Technical analysis of EUR/JPY for August 19, 2015

Technical outlook and chart setups:

The EUR/JPY has dropped to 137.00 levels as expected and is bouncing back higher. Please note that 137.00 level is also past resistance turned support of the earlier cone consolidation. Furthermore, a tweezer bottom candlestick pattern has also appeared on the 4H chart setup here, indicating a potential reversal. It is now recommended to initiate long positions below 136.00 levels. Immediate support is seen at 135.50 levels, followed by 135.00, 134.00, 133.00 and lower, while resistance is seen at 139.40 levels, followed by 140.40 and higher respectively.

Trading recommendations:

Initiate/remain long, stop below 136.00, a target is open.

Good luck!

The material has been provided by InstaForex Company –