FX.co ★ Technical analysis of EUR/JPY for July 28, 2014

Technical outlook and chart setups:

1. The EUR/JPY pair is seen to be bouncing off just ahead of critical lows/support at 136.20/30 levels for now. A morning star bullish signal was seen on the daily chart view last week but the follow up is still missing. At the moment, prices are around intermediary support of 136.65 levels and expected to stage a counter trend rally at least towards 137.80/90 levels as shown here.

2. Support is at 136.20/30 levels while resistance is seen through 137.40, followed by 138.40 and higher up respectively.

3. The structure indicates that EUR/JPY could be turning bullish at least for short term from current levels.

Trading recommendations:

Initiate long positions now, stop at 135.90, target is open.

Good luck!