Technical analysis of EUR/JPY for May 19, 2014



Technical outlook and chart setups:
1. The EUR/JPY pair is looking for a bullish reversal ahead of key support at 138.40 levels as seen here. Please also note that the sub 139.00 levels is also supported by fibonacci 0.618 levels of the rally between 136.00 and 143.50 as shown here. Recommendation is to watch out for a bullish reversal here and go long. Risk remains below 138.00.
2. Support is at sub 138.00, followed by 136.00 and lower while resistance is at 141.00, followed by 142.50, 143.50/144.00 and 145.50 respectively,
3. The structure indicates that EUR/JPY might be setting up for a bullish reversal at sub 139.00 levels. High probability setup would be bullish from here on till prices stay above 138.00 levels.

Trading recommendations:
Initiate longs, stop below 138.00, target is open.

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