FX.co ★ Technical analysis of EUR/JPY for April 21, 2015

General overview for 21/04/2015 09:30 CET

As we anticipated yesterday, the market made wave b green and reversed sharply to make the last corrective wave down - wave c green. Currently, this wave might extend the downward move to the level of 125.72 or bounce/reverse at the current zone. The most important level for bulls is the intraday support at the level of 125.72 because any breakout lower will directly expose to the test of a swing low at the level of 126.08. On the other hand, only a clear, impulsive breakout above the supply zone, that is the key level for bears, will be regarded as bullish. The breakout might even extend its move up to the level of 129.94. Please notice that the wave b green might be evolved into the triangle formation.

One more last thing worth mention is a classical bearish flag pattern on the H1 time frame that has a projected min. target at the level of 123.63.

Support/Resistance:

126.08 - Swing Low

126.72 - Intraday Support

127.27 - WS1

127.58 - Intraday Resistance

128.10 - Weekly Pivot

128.56 - 128.79 - Supply Zone

129.94 - WR1

Trading recommendations:

Daytraders and swingtraders should refrain from trading until the price hits the key level for bulls or bears.