FX.co ★ Technical analysis of EUR/JPY for June 2, 2015

General overview for 02/06/2015 14:45 CET

The previous count has been invalidated due to wave one and wave two overlap which is against the Elliott wave rules. The current count incorporates the latest developing and points out a possible pivot point for this market after wave five extension. In higher time frames, the current count is an ABC irregular flat correction in wave B. So, this move higher might be a final push to the upside. The projected target is the zone between the levels of 138.55 (WR1) and 138.71 (261%Fibo). Bearish divergence supports the view.

Support/Resistance:

138.71 - 261%Fibo

138.55 - WR2

137.95 - WR1

137.91 - Intraday Resistance

136.95 - Intraday Support

136.59 - Intraday Support

Trading recommendations:

Buying on dips is the way to trade on this market with tight SL (20-30 pips) and TP at the levels of 138.55 - 138.72.