Technical analysis of EUR/JPY for May 18, 2015 Market Analysis Review

General overview for 18/05/2015 12:35 CET

The last five waves to the upside seem to be completed and market should reverse to the downside to continue to develop the wave C. The first confirmation of this scenario comes with a breakout of the level of 135.66 and the weekly pivot breakout to the downside. Then, the market should test the golden trend line, violate it and head into the first weekly support at the level of 134.87. Please notice that the bearish divergence is supporting the view.

Support/Resistance:

136.96 - Swing High

136.55 - Intraday Resistance

135.86 - Weekly Pivot

135.66 - Intraday Support

134.87 - WS1

Trading recommendations:

As long as the market is trading below the level of 136.55 daytraders should consider opening sell orders from current market levels with SL above the level of 136.56 and TP at the level of 135.66.

The material has been provided by InstaForex Company - www.instaforex.com

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