Friday, 16 May 2014

Technical analysis of EUR/JPY for May 16, 2014 Trend News

General overview for 16/05/2014 08:50 CET


The current count is still very bearish and lower prices should be expected, but the chances are rising for a short-term upside bounce as the bullish divergence is building on the momentum oscillator on H1 time frame. That means the key level here to keep an eye on is at the level of 139.38 - 139.45 zone because any breakout above this zone will be the first clue that the corrective cycle has started. Moreover, any breakout above next technical resistance at the level of 139.87 would invalidate the impulsive bearish count. Otherwise more downside is anticipated with the fist target at the level of 138.86 with a possible extension to the level of 138.15.


Support/Resistance:


139.87 - Technical Resistance


139.38 - 139.45 - Intraday Resistance |Key Level |


138.97- Intraday Low


138.86 - WS1


138.15 - WS2


Trading recommendations:


Daytraders should open buy stop positions if the level of 139.46 is broken with SL below the level of 139.08 and TP at the level of 139.87.


Swing traders should still keep the running short positions as lower prices are still expected with SL slightly above the level of 140.20.


eurjpy_h1.jpg


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



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