FX.co ★ Technical analysis of EUR/JPY for May 18, 2015

Technical outlook and chart setups:

The EUR/JPY pair faced resistance around the 136.00/137.00 region and should be looking to produce a meaningful retracement lower before resuming its rally. The pair is seen to be trading around 126.75/77 and producing a stat doji on the H4 chart view. It is hence recommended to initiate fresh short positions with risk at the level of 137.50 now. Immediate support is seen at 133.00 followed by 132.00, 129.00, 128.00, and lower while resistance is seen at the level of 137.00 followed by 138.00 and higher respectively.

Trading recommendations:

Initiate fresh short positions for now, stop at 137.50, a target is open.

Good luck!