FX.co ★ Technical analysis of EUR/JPY for February 23, 2016

Technical outlook and chart setups:

The EUR/JPY pair dropped lower and hit the level of 123.50 as it was discussed and expected earlier. The pair seems to complete its drop that began from 132.50. EUR/JPY is trading higher at 123.75 at the moment, looking for a stage for an impressive rally from here. It might be corrective though. Please note that the pair has triggered all targets/extensions (marked in Red), and hence a high probability of a pullback remains at the current levels. It is hence recommended to take full profits on short positions now and wait for a bullish reversal signal to go long. Immediate interim support is seen at 123.50, while resistance is at 124.25. Bulls are expected to regain control.

Trading recommendations:

Book profits on all short positions taken earlier and remain flat.

Good luck!