EUR/JPY profit target reached once again, prepare to sell

The price has bounced above our buying entry and is fast approaching our profit target once again. We prepare to sell below major resistance at 130.78 (Fibonacci extension, horizontal swing high resistance) for a drop towards 129.96 support (Fibonacci retracement, horizontal pullback support).

Stochastic (34,5,3) is seeing major resistance below 94% where we expect a strong drop from.

Correlation analysis: We are seeing JPY strength with AUD/JPY and EUR/JPY expecting drops. We are also expecting EUR weakness with strong resistance seen on EUR/USD and EUR/JPY.

Sell below 130.78. Stop loss is at 131.08. Take profit is at 129.96.

Analysis are provided by InstaForex