FX.co ★ Technical analysis of EUR/JPY for Aug 22, 2014

Technical outlook and chart setups:

1. The EUR/JPY pair almost halted at the 138.00 levels as seen here, by taking out first resistance. The pair is expected to dip towards 136.50 levels before rallying further. Please, note that this rally is still a retracement of the overall downtrend.

2. Support is seen at 135.80/136.00, followed by 134.00 while resistance is seen at 139.30, followed by 140.00 and higher respectively.

3. The structure indicates that EUR/JPY has possibly resumed its counter trend rally and buying on dips is favored.

Trading recommendations:

Remain flat, look to go long at 136.50.

Good luck!