FX.co ★ Technical analysis of EUR/JPY for October 02, 2014

Technical outlook and chart setups:

The EUR/JPY pair has corrected itself into 137.00 levels as seen here, 100 pips lower than what was anticipated. Please note that the pair is bouncing off fibonacci 0.786 support level of the rally between 135.80 and 141.30 at present. Immediate support is at 135.80, followed by 134.00 and lower while resistance is seen at 139.00/20, followed by 141.00/30 and higher respectively. It is recommended to initiate long positions now (137.30/40), risk remains below 135.80. As depicted here, a bullish reversal now could take prices higher up to 143.00 and 145.00 in the coming weeks.

Trading recommendations:

Initiate long positions now, stop at 135.80, target 143.00.

Good luck!