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21.05.2014 09:19 AM
Technical analysis of EUR/JPY for May 21, 2014

General overview for 21/05/2014 08:05 CET

The count has been a little adjusted due to slightly different development than expected, but still the upside correction is being anticipated very soon: the downward momentum is decreasing and a multiple bullish divergence is presented on the hourly chart. . The first confirmation of a corrective cycle to start is an impulsive breakout above the level of 139.00 (intraday resistance) and the golden trendline breakout. Please notice that the breakout above weekly pivot is the key resistance breakout to confirm the corrective cycle is in progress.

Support/Resistance:

138.54 - Intraday Support

139.00 - Intraday Resistance

139.45 - Weekly Pivot

139.87 - Technical Resistance

140.09 - WR1

Trading recommendations:

Daytraders should consider opening small long positions from current price levels with SL below the level of 138.49 and TP at the level of 139.44 with a possible upward extension.

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