Technical outlook and chart setups:
The EUR/JPY pair has reversed from the level of 136.00 earlier and is trading at 133.60/70 now. The pair has turned bearish but the fall is expected to be corrective in nature. EUR/JPY bears seem to be in control for now and the pair is expected to drop further towards 129.00/130.00 before resuming its rally. It is recommended to initiate fresh short positions with risk at 136.00 now. Immediate support is seen at the level of 133.00 followed by 131.50, 127.00, and 126.00, while resistance is seen at 136.50/137.00 followed by 138.00, 139.00, and higher respectively.
Trading recommendations:
Initiate fresh short positions, stop at 136.00, a target is open.
Good luck!
