Technical outlook and chart setups:
The EUR/JPY pair is seen to be trading around 117.40 levels at this moment, and it is looking to drop lower from here. It is expected to carve a lower high ahead of 117.75 levels and turn bearish from there. It is expected to carve a lower high ahead of 117.75 levels and turn bearish from there. The wave structure also reveals that the pair has unfolded into 5 waves from 109.50 levels and it should produce a meaningful retracement lower towards 113.50 levels, if not further. It is hence recommended to remain short from here, with risk above 118.40 levels. Immediate intermediary support is seen at 115.20 levels, while resistance is at 118.40 levels respectively. Bears are expected to remain in control till prices stay below 118.40/50 levels.
Trading recommendations:
Remain short now; stop is at 118.40, target is 113.50.
Good luck!
