FX.co ★ Technical analysis of EUR/JPY for February 05, 2016

Technical outlook and chart setups:

The EUR/JPY pair bounced lower, off the resistance trend line around the levels of 132.00/25 earlier. The pair reached interim lows at 130.00 and is trading higher around 130.75/80 now. Please also note that the pair has reversed lower from a confluence of the trend-line resistance as well as Fibonacci 0.618 resistance as depicted here, from 132.00/25 earlier. A high probability remains that a continued drop from the current levels will take place, and bears should remain in control until prices stay below 132.00/25. Immediate interim resistance is seen at 132.00/25, while support is seen at 129.00.

Trading recommendations:

Remain short now with stop above 132.25.

Good luck!