Technical outlook and chart setups:
The EUR/JPY pair is trading above the level of 127.00 at the moment, after it made fresh lows at 126.00 yesterday. The pair had pulled back producing a hammer candlestick pattern yesterday, indicating a potential reversal. Now, it is hence recommended to initiate long positions with risk at 126.00. Immediate support is seen at 126.00 followed by 125.00 and lower while resistance is seen at 131.00/50 followed by 136.50 and higher respectively. Bulls are setting up for at least a meaningful counter trend rally from her on.
Trading recommendations:
Initiate long positions, stop at 125.70, target is open.
Good luck!
