FBS: Trading recommendations for EUR/JPY
Tatiana Norkina, an analyst at FBS
An unexpected twist in the bidding for the pair. The sudden weakening of the Japanese yen allowed bulls to return currency pair rate to recent local maxima - 136.80. Besides, bears did not have quite a bit to reach the designated target of 135.00.
However, the breakdown of 136.80 might open the way to 137.70.
All indicators are quite optimistic. But RSI is located in overbought territory. Therefore, in the next few hours a rollback might occur in the level that we are already familiar with - 136.30.
Technical levels: Support - 136.30; resistance - 136.80, 137.70.
1. Buy - 136.30; SL - 136.00; TP1 - 137.70.