Technical outlook and chart setups:
The EUR/JPY pair seems to be testing lows around 130.30/40 at the moment. Please note that the pair has produced a doji candlestick pattern on the daily charts. A test and reversal could indicate that a potential pullback rally is setting up. While a drop lower could expose the level of 129.00 (the fibonacci 0.786) as support and delay matters further for a pullback. It is recommended to remain flat at the moment and seek further evidence before committing a trade. Immediate support is at 130.30 followed by 129,00 and lower, while resistance is seen at 132.26/30 and higher.
Trading recommendations:
Remain flat now.
Good luck!
