FX.co ★ Technical analysis of EUR/JPY for May 13, 2015

Technical outlook and chart setups:

The EUR/JPY pair is preparing for a deeper correction until the price remains below 136.00. The pair is seen to be trading at the levels of 134.80/90 now. it is expected to drop lower. It is hence recommended to hold short positions with risk at 136.00. Immediate support is seen at 133.00 followed by 131.50, 129.00, and lower, while resistance is seen at 136.00/50, 137.00, and higher respectively. A 3 wave corrective drop is expected to bring the prices lower towards 130.00 and 129.00 respectively before a reversal.

Trading recommendations:

Remain short, stop at 136.00, a target is open.

Good luck!