Technical analysis of EUR/JPY for July 31, 2015

Technical outlook and chart setups:

The EUR/JPY pair dropped lower towards 135.50 after testing its 50-day moving average. The pair is forming a cone consolidation pattern at the moment and could find support at 135.00. Please also note that the pair is at the 50% fibonacci support of a rally between the levevls of 134.00 and 137.00. It is recommended to remain flat for now and initiate long positions around the levels of 135.00/30 with risks at 134.00. Immediate support is seen at 135.00 followed by 134.00, 133.00, and lower, while resistance is seen at 137.00 (interim) followed by 138.00/139.00 and higher.

Trading recommendations:

Remain flat for now and look to initiate longs around 135.00/20.

Good luck!

The material has been provided by InstaForex Company –