FX.co ★ Technical analysis of EUR/JPY for January 07, 2016

Technical outlook and chart setups:

The EUR/JPY pair has dropped to the final Fibonacci support as depicted here on the daily chart view, around the 127.00 levels. The pair is seen to be trading around the 127.50/60 levels at the moment, producing a tweezers bottom bullish signal. The entire structure could still be encouraging for bulls if the 126.09 lows remain intact for the next 1-2 trading sessions. It is hence recommended to initiate long positions now with risk at the 126.00 levels. Immediate support is seen at the 126.00 levels, while resistance is seen at 129.50 followed by 132.50 and higher. If the mentioned structure holds, bulls should resume rally and take control back.

Trading recommendations:

Initiate long positions, stop is at 126.00, target is open.

Good luck!