Technical Outlook:
EUR/JPY structure is presenting 2 possible options. 1) The rally of the wave 5 from 97.00 to 111.00 correcting in 3 waves which can extend towards 103.00 and 101.00 levels. 2) The 3 wave downswing might have ended below 104.00 levels; presently the single currency is attempting to reach a new high, as shown in the chart setup below. Until the measured resistance at 107.50 holds at the same level, prices are expected to fall down. Please, consider the Chart Setup and Recommendations below.
Chart Setup:
Immediate resistance is located at 107.50 as it was mentioned yesterday. But it is necessary to concern the fact that EUR/JPY has passed through all retracement levels acting as resistance from 106.30/50 levels. Currently prices are testing 107.00 levels and are likely to break down to upside. It is hereby suggested to re-consider the trading strategy in case 107.30/50 levels are broken today. The resistances are seen at 107.50 and 111.00 levels and supports are at 102.00, 99.20 and 98.00 respectively. You can find two recommended trading strategies below.
Trade Recommendations:
1. Sold @ 105.00, Stop @ 107.50, Target1 @ 102.50, Target2 @ 101.00
2. If stopped out today, it is recommended to: Buy @ 105.50/70, Stop @ 104.50, Target above 111.00.
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