FX.co ★ EurJpy retraces to 128.00. 126.00 intermediary support

Technical outlook and chart setups:

The single currency pair rose through 131.20/30 levels yesterday and pulled back to 128.00 level now. This region is re-enforced by the 0.618 Fibonacci retracement of the rally between 126 and 131.20/30. If short positions were taken yesterday, it is recommended to cover and book profits; also initiate 50% long positions now, at 128.80/85. Immediate intermediary support is at 126.00. A break of 126.00 would push prices down towards 123.00/124.00 levels; but a rally here is expected to print highs around 133.00 at least. Resistance is spread through 132.00 and 133.80/134.00 levels. Looking higher till prices stay above 126.00.

Trading recommendations:

Initiate 50% long positions, stop is at 126.00, and target is at 133.00 at least.

Good luck!