Technical outlook and chart setups:
The EURJPY pair is seen to be
consolidating at the moment, looks to be in its wave 4 of the 5 wave’s decline
that resumed from 118.45 levels earlier. It is seen to be trading at 113.50
levels at this moment, looking to continue dropping lower from here. Please
note that the pair has reversed lower from 114.00/10 levels as expected which
is also fibonacci 0.382 resistance of wave 3. The wave structure remains
unchanged for now and indicates that EURJPY has formed major top at 121.90
levels earlier, and has also carved out a lower high at 118.50 levels as seen
here. At this moment the pair looks to have terminated wave 4 already, within
its 3rd wave drop from 118.50 levels. Bears are expected to remain
in control till prices stay below 115.00 levels going forward. It is hence
recommended to remain short now with risk above 115.00 levels. Immediate
resistance is seen at 115.00 levels, while support is at 110.50 levels
respectively.
Trading recommendations:
Remain short now; stop above
115.00, target is open.
Good luck!
The material has been provided by InstaForex Company – www.instaforex.com
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