FX.co ★ Technical analysis of EUR/JPY for December 21, 2015

Technical outlook and chart setups:

The EUR/JPY pair dropped to 130.00/50 as expected earlier and bounced off. The wave structure has been unfolding till now encouraging bulls. The pair rallied from 129.50 to 134.50 earlier and the drop from there was corrective, in 3 waves. It is hence recommended to initiate fresh long positions with risk at 130.00. If this wave count works well, the pair could be seen rallying above 134.50 soon. Immediate support is seen at 130.00, followed by 129.00, while resistance is seen at 133.70 and 134.50.

Trading recommendations:

Initiate 50% long positions with stop at 130.00.

Good luck!