Technical outlook and chart setups:
The EUR/JPY pair is trading higher at 127.55 levels. As depicted on the daily chart view, the Fibonacci 0.618 resistance is seen at 128.30 levels going forward. Also a trend line resistance is seen close to those levels, raising probability for a bearish reaction. The pair is testing past support that was turned into resistance zone at 127.55 levels as well, and a bearish bounce could resume its larger downtrend. Hence it is recommended to watch out for a reversal between 127.50 and 128.40 levels to go short again. Immediate resistance is seen around 128.20/30 levels, while support is seen through 125.00 levels respectively. Only a break above the resistance trend line and subsequently above 132.20 levels would confirm a change in trend.
Trading recommendations:
Remain flat for now, look to sell around 128.30/40 levels.
Good luck!
