FX.co ★ Technical analysis of EUR/JPY for May 26, 2014

General overview for 26/05/2014 10:30 CET

The market behaves as anticipated, developing the corrective cycle to the upside. This cycle has not been finished yet and there is more to come soon. The main target for the wave c green is the key level of technical resistance at the level of 139.87. Please notice that the wave 2 black might not just finish there, as this might be only the wave (a) blue of the more complex and time-consuming structure.

Support/Resistance:

140.63 - WR3

139.97 - WR2

139.86 - Key Level

139.48 - WR1

139.12 - Intraday Resistance

138.81 - Weekly Pivot

138.58 - Intraday Support

138.31 - WS1

138.14 - Swing Low

Trading recommendations:

Daytraders should consider opening buy stop positions if the level of 139.13 is broken, with SL below the level of 138.79 and TP at the level of 139.48 with a possible extension upwards to the level of 139.86.

Swing traders should wait for the correction to complete before shorting the market again.