EUR/JPY profit target reached perfectly, prepare to buy for a bounce

The price continued its drop yesterday and has reached our profit target perfectly. We prepare to buy above major support at 130.07 (Fibonacci extension, horizontal swing low support) for a bounce up to at least 130.07 resistance (Fibonacci retracement, horizontal pullback resistance).

Stochastic (21,5,3) is testing major support at 7.1% and we expect a corresponding bounce from that level.

Correlation analysis: We're seeing JPY strength with drops on AUD/JPY and EUR/JPY.

Sell below 130.07. Stop loss is at 130.42. Take profit is at 128.92.

The material has been provided by InstaForex Company - www.instaforex.com