Technical outlook and chart setups:
The EUR/JPY pair has finally dropped lower after reversing from 118.47 levels, just a few pips higher than projected earlier. Please note that EUR/JPY may be carving out a flat A-B-C structure and could possibly drop lower towards 115.30 levels at least. The pair is seen to be trading at 116.50/60 levels, looking to slip lower at least towards interim support as depicted here. 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 118.40/50 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 going forward.
Trading recommendations:
Remain short now; stop at 118.40/50, target is 113.50.
Good luck!
