FX.co ★ Technical analysis of EUR/JPY for May 23, 2014

General overview for 23/05/2014 08:10 CET

The upward corrective wave progression is developing in more complex and time-consuming manner than I've expected, but the overall concept of an upside corrective cycle in wave 2 black is still in progress. Currently the market is below the descending golden trendline and only a clear breakout higher above this trendline is bullish and the levels indicated at the beginning of this week might be the target again. On the other hand, breakout below the intraday support at the level of 138.61 might extend the corrective cycle even down to the previous wave b purple low.

Support/Resistance:

138.14 - Wave b purple Bottom

138.62 - Intraday Support

139.12 - Intraday Resistance

139.44 - Weekly Pivot

Trading recommendations:

Trading the middle of the corrective wave b is the most difficult to make profits so I would advise to wait for more clear pattern to appear.