Technical outlook and chart setups:
The EUR/JPY pair dropped into the territory aroung134.00/50 as we had expected earlier. The pair could continue falling until 133.00 but short-term rallies are possible. An ideal scenario for the pair would be to drop to the level of 132.80 before producing any meaningful retracement higher. It is recommended to book partial profits on the short positions taken earlier and move risk to break-even levels. Immediate support is seen at 133.00 followed by 131.00, 129.00, 128.00, and lower, while resistance is seen at 136.00 followed by 137.00, 138.00, and higher respectively.
Trading recommendations:
Book partial profits on short positions taken earlier, move stop to break even levels, a target 133.00.
Good luck!
