FX.co ★ Technical analysis of EUR/JPY for Sep 05, 2014

Technical outlook and chart setups:

1. The EUR/JPY pair was on its way higher towards the 139.00 level but reacts sharply lower again towards 136.00. This could still be a test of resistance turned support line and the pair could resume rally higher again. It is recommended to remain long, risk is below 136.00.

2. Support is seen at 135.70/80, followed by 134.00 and lower, while resistance is seen at 139.20/30, followed by 140.10/20, and higher respectively.

3. The structure indicates that EUR/JPY could still carve a higher low ahead of 135.70 and continue rally.

Trading recommendations:

Remain long, stop below 136.00, the target is open.

Good luck!