Technical analysis of EUR/JPY for May 6, 2015 Market Analysis Review

General overview for 06/05/2015 12:10 CET

The current Elliott wave count does not really support the impulsive decline from the wave B top at the level of 135.26 as it can be more clearly labeled as a three wave decline. This is why the recent local high might be alternatively the wave (iii) green high instead of a swing top. This means that we can expect another short-term rally above that level if the technical support at the level of 132.55 is not violated. In other words, the price must go below the weekly pivot at the level of 133.34 to be considered intraday bearish.

Support/Resistance:

135.26 - Swing High

134.88 - Intraday Resistance

134.03 - Intraday Support

133.42 - Weekly Pivot

132.55 - Technical Support

Trading recommendations:

Daytraders should consider opening sell orders from the current market levels with SL above the level of 135.27 and TP at the level of 133.42 with a possible extension lower to the level of 132.55.

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