Technical outlook and chart setups:
The EURJPY had dropped to fresh lows at 113.00/60 levels yesterday, before pulling back higher again. The pair is seen to be trading at 113.24 levels at this moment, looking to rally and target first resistance at 114.70/80 levels. Please note that the pair is still within the range of fibonacci 0.618 support of the entire rally between 110.80/90 through 118.40/50 levels as depicted here. Furthermore the pair seems to have completed the drop from 118.40/50 levels in 3 waves, which is corrective till now. It is hence recommended to remain long now, with risk below 113.00 levels. Immediate support is seen at 113.00 levels, while resistance is seen through 114.75 levels. Bulls should remain in control till prices stay above 113.00 levels going forward.
Trading recommendations:
Initiate fresh long now, stop below 112.50, target is open.
Good luck!
