FX.co ★ EUR/JPY Technical Analysis for August 02, 2016.

Technical outlook and chart setups:

The EUR/JPY cross has re-tested the lows today at 113.50/60 levels, before pulling back higher again. The pair is seen to be trading at 113.90 level at this moment, looking to rally and target first resistance at 114.70/80 levels. Please note that the pair has bounced off from fibonacci 0.618 support of the entire rally between 110.80/90 through 118.40/50 levels as depicted here. Furthermore the pair seems to have completed the drop from 118.40/50 levels in 3 waves which is corrective till now. It is hence recommended to remain long now, with risk at 113.00 level. Immediate support is seen at 113.30/40 levels, while resistance is seen through 114.75 level. Bulls should remain in control till prices stay above 113.30/40 levels broadly.

Trading recommendations:

Initiate fresh long now, stop below 113.40, a target is open.

Good luck!