FX.co ★ Technical analysis of EUR/JPY for May 22, 2015

General overview for 22/05/2015 07:30 CET

The count had been slightly changed to incorporate a sooner-than-expected wave (i) green termination and to label the latest upward rally as a three wave corrective structure. Please notice that as long as the red line at the level of 133.09 is not clearly violated, there is still a possibility that the last wave up is only a part of a larger corrective structure. This would mean, the dynamic support provided by the golden trendline might be violated to make wave b green. However, the market can go up again to complete the wave c of the overall larger corrective structure. As long as no new swing high is made above the level of 136.95, the bias is bearish and new lows are expected on this market.

Support/Resistance:

133.09 - Key Level

133.45 - Technical Support

133.90 - Intraday Support

134.40 - Golden Trend Line Dynamic Support

134.87 - WS1

135.29 - Intraday Resistance

135.85 - Weekly Pivot

Trading recommendations:

As long as the level of 135.29 is providing resistance, daytraders should consider opening sell orders from the current levels with SL just above the level of 135.31 and TP at the level of 133.90, with a possible extension lower down to the level of 133.45 and beyond.