FX.co ★ Technical analysis of EUR/JPY for May 25, 2015

General overview for 25/05/2015 10:00 CET

There is still no decisive breakout below the level of 133.09. So, we cannot be sure that the top at the level of 136.95 is the major swing top for a larger time frame cycle. It looks like the market is trying to definitely ensure this top is in place as the current wave progression looks very bearish. However, the intraday sub-wave might be considered slightly bullish as there is bullish divergence between the price and momentum oscillator. But the bias is still bearish in the larger perspective and lower lows are expected on this market.

Support/Resistance:

133.09 - Major Technical Support

133.30 - Intraday Support

133.48 - Technical Support

133.92 - Intrday Resistance

134.29 - Weekly Pivot

Trading recommendations:

As the market is approaching the major support level, it is advised to stay aside for a while and observe the market response. If the level holds, small corrective rally should be expected. That gives an opportunity to open sell orders ( levels 133.92 - 133.50). It it does not hold, selling on corrections up to the level of 133.09 is the way to trade on this market for now.