FX.co ★ Technical analysis of EUR/JPY for May 4, 2016

General overview for 04/05/2016:

There is still one more sub-wave missing on the hourly time frame chart. According to the Elliott wave rules it should be the last wave to the downside - wave (c) blue. The intraday resistance at the level of 123.35 held the line, and the market reversed lower towards the weekly pivot at the level of 122.98. Currently, bears might want to break out below the dashed intraday trend line and test the recent low at the level of 121.66. Please notice that the market is still trading inside the pink bearish zone.

Support/Resistance:

126.45 - Swing High

124.27 - WR1

123.35 - Intraday Resistance

122.98 - Weekly Pivot

121.67 - Intraday Support

Trading recommendations:

The buy orders from Monday were closed with profit. Currently, the day traders should consider opening sell orders from the current market levels with SL above the level of 123.51 and TP at the level of 121.66.