FX.co ★ Technical analysis of EUR/JPY for April 27, 2016

General overview for 27/04/2016:

The market might terminate the wave 2 correction sooner than expected and enter the bullish zone in an impulsive manner. Wave 1 purple with the top at the level of 125.95 looks impulsive and might be the first wave of the upcoming wave 3 purple. In that case, a strong, impulsive move to the upside is anticipated. Nevertheless, please notice, that the bearish divergence and the Fibo zone between the levels of 61.8% - 66.7% do not currently support the impulsive upward rally scenario.

Support/Resistance:

121.71 - Local Low

123.36 - Bearish Zone Level

123.79 - Projected Target for Wave 2

124.68 - Intraday Support

124.52 - Weekly Pivot

125.73 - 61%Fibo

125.95 - Intraday Resistance

Trading recommendations:

Traders should now stay aside from the market and wait for the next trading setup to occur shortly.