FX.co ★ Technical analysis of EUR/JPY for July 08, 2014

Technical outlook and chart setups:

1. The EUR/JPY pair is seen to be steadily drifting lower after reversing from fibonacci 0.618 resistance levels around 139.20, earlier. A break below 137.80 would accelerate further downside and the pair is expected to move towards 136.00 and lower.

2. Support is seen at 137.70, followed by 136.00, 134.00 and lower, while resistance is seen at 140.00, followed by 141.00, 142.50/143.50 and higher up respectively.

3. The structure indicates that EUR/JPY needs to breakout drifting lower further. A bullish bounce here could rally through 140.00 levels.

Trading recommendations:

Remain short, move stop to break even levels, target remains open.

Good luck!