FX.co ★ Technical analysis of EUR/JPY for May 20, 2014

General overview for 20/05/2014 07:40 CET

The corrective cycle of wave 2 black is still in progress and one more push to the upside is needed to complete the wave c purple of the overall progression. The target levels are at the intraday resistance at the level of 139.45 and in case of an extension at the level of 139.87. When this levels are hit, the failure is expected and downtrend resumption will make the intraday support at the level of 138.96, the important one, because any breakout lower would mean the low will be tested. Please notice that this type of a correction might get more complex and time consuming.

Support/Resistance:

138.60 - Wave b Bottom|Swing Low|

138.96 - Intraday Support

139.45 - Intraday Resistance | Weekly Pivot|

139.87 - Technical Resistance

Trading recommendations:

There are two good levels to open a sell limit orders for a swing trade: 139.45 and 139.87 (the second one is better). SL for both orders should be at the level of 141.08 and TP is open for now (136.25 might be the first one).