FBS: Trading recommendations for EUR/JPY
Tatiana Norkina, an analyst of FBS
The currency pair was tested the important figure of 137.00, and then it was corrected to 137.60. However, that does not mean the bearish trend was over: the immediate goal for bears can be the level of 136.30. At the same time, the pair is quite oversold now; this could trigger a corrective recovery to the 138.25 level.
However, the short-term bullish fuse is likely to last only up to 137.80, where one can wait for the resumption of sales.
The correctional recovery, which has been lasting for the last few hours, is confirmed by Bollinger band which channel is narrowed. But the Moving Average is still pointing down.
MACD and RS Ic have formed the divergence, though everything is still in bearish zone.
Technical levels: Support - 136.30, 136.60, 137.00; resistance - 137.80, 138.25.
1. Sell - 137.80; SL - 138.00; TP1 - 137.00; TP2 - 136.60.
2. Sell - 138.25; SL - 138.45; TP1 - 137.00; TP2 - 136.60.