Technical outlook and chart setups:
The EUR/JPY pair rallied over 200 pips after hitting lows at 122.00 levels yesterday. The pair is seen to be trading above 124.00 levels for now, breaking above the resistance trend line as seen here. Bulls could be poised to rally through 125.00 levels as well, before producing a meaningful retracement. Immediate resistance is at 125.00 levels while support is seen at 123.60 levels, followed by 122.75. It is recommended to remain flat for now and look to go long on a dip towards 122.75 levels from here. Please also note that 122.85 levels are Fibonacci 0.618 support of the rally between 122.00 and 124.25 levels. Bulls are now expected to remain in control till prices stay above 122.00 levels broadly.
Trading recommendations:
Remain flat for now, look to buy lower.
Good luck!
