FX.co ★ Technical analysis of EUR/JPY for May 07, 2015

Technical outlook and chart setups:

The EUR/JPY pair is trading around 135.60/70 levels preparing for a meaningful retracement ahead. The pair could rally another 100 pips towards 136.50 and then drop towards a deeper correction lower. At least 130.00 levels could be expected on the lower side before the rally resumes again. It is recommended to remain flat for now and look to initiate short positions around 136.50 levels. Immediate resistance is seen at 136.50/137.00 levels while support is seen at 133.00 levels, followed by 131.00, 129.00 and lower respectively.

Trading recommendations:

Remain flat for now, look to sell higher.

Good luck!