Technical outlook and chart setups:
The EURJPY pair is dropped below 114.50 levels and hit fresh lows at 113.60 levels beyond our expectations today. The pair has triggered stops placed at 114.50 levels but still it remains structurally constructive for bulls to stage a rally from here. Please note that the pair is testing the fibonacci 0.618 support levels of the rally between 111.00 and 118.50 levels respectively. A bullish reversal from here would keep the structure intact and keep bulls in control for now. On the flip side, a break below 113.40 levels would indicate further bearishness for the pair. It is recommended to initiate fresh long positions from here with risk below 113.40 levels. Immediate support is seen at 113.50 levels, while resistance is at 117.00 levels respectively.
Trading recommendations:
Initiate fresh long now, stop below 113.50, target is open.
Good luck!
