FX.co ★ EurJpy Pullsback From Resistance, 104.75 Level Still Possible

Technical Outlook and Chart Setups:

All right, the single currency respects resistance at 104.20/30 levels and pulls back. Fine till now, but it does not still confirm a bearish view, aggressively. It is still possible that the ongoing consolidation between 103.00 and 104.50 breaks out to fresh highs before a meaningful correction. It is humbly recommended, to cover short positions taken yesterday between 104.20/30, at least for now. Intermediary support stands at 103.00 at the moment and a break down would suggest a move lower towards 102.00 level, as it was discussed yesterday. But a bullish bounce at current levels around 103.20/30 levels would still take prices to 104.75 level before reversing. Exit short positions for now.

Trading Recommendations:

1. Exit short positions if they were taken yesterday.
2. Aggressive trade strategy would be to go long, stop at 102.90, and target above 104.50/60. Reverse on a stop trigger.
3. Conservative trade strategy would be to go short on a break of 103.00 or on a rally towards 104.70 level.

Good Luck!