FX.co ★ EUR/JPY Brakes 105.00, Flip Trades

Technical Outlook:

On Friday there was a major reversal for most currencies including the EUR/JPY pair. The overall outlook was bearish and remains relevant at the moment. The counter trend rally was completed at 107.20 levels to compare with forecasts of 107.50 levels. Resistance is currently seen at 107.50 and 111.00 levels as shown in the chart below. Today it is recommended again to follow the trend and go short after being stopped out at 105.60/80 levels. "Trend is Your Friend, Until It Bends.." There are no signs of reversal yet, so please, consider the Daily Chart Setup depicted below.

Chart Setup:

The counter trend rally is expected to be the first followed by reversal. It is absolutely clear now that our expected counter trend rally was completed sooner than expected at 107.20 levels, as the EUR/JPY pair is moving southwards. It is good that we moved our stop loss level to a breakeven around lasw week's 105.60/80. The points 103.80 and 101.80 are considered as next downside targets. It is necessary to mention that "Trading is a Game" and the safe trading should be of the utmost importance with proper equity management through protective technically correct, stop loss levels. It doesn't matter if we got stopped out, we were at breakeven levels. From this point starts new trade direction. Bottom line: Lower

Trade Recommendations:

Sell @ 105.00, Stop @ 107.50, Target1 @ 103.80, Target2 @ 101.80

Best Regards,