FX.co ★ Technical analysis of EUR/JPY for May 15, 2014

Technical outlook and chart setups:

1. The EUR/JPY pair has traded below 140.00 levels for now, breaking immediate support levels. The pair is expected to get support from 139.00/10 levels as seen here, which is fibonacci 0.618 of the rally between 136.00 and 143.50. A probability of the pair rallying from current levels remain high. Recommendations are to go long, risk is around 138.90 for now.

2. Support is at 138.50, followed by 136.00, 134.00 and lower while resistance is at 141.00, followed by 142.50, 143.50/144.00 and 145.50 respectively.

3. The structure indicates that the fall from 143.50 could be a correction of the previous rally from 136.00 to 143.50. If this count holds true, the pair could see a bullish reversal above 143.50 in the sessions to come.

Trading recommendations:

Initiate long positions, stop at 138.90, target is open.

Good luck!