27.05.201510:09 Forex Analysis & Reviews: Technical analysis of EUR/JPY for April 27, 2015

General overview for 27/05/2015 09:55 CET

There are two possible scenarios on the intraday chart. Both scenarios depend on the key level violation. The first main count scenario indicates that wave (ii) green is completed and wave i blue is in place. So, the current upside rally is only a minor, internal corrective cycle that should terminate below the intraday resistance at the level of 134.50 and continue lower. On the other hand, alternative count indicates a more complex corrective structure in wave (ii) green and a breakout which is likely to take place above the intraday resistance in order to complete wave c green is of the overall structure. In both scenarios the key level is intraday support at the level of 133.65 because any breakout lower will be considered bearish.

Support/Resistance:

133.08 - Technical Support

133.65 - Intraday Support|Key Level|

134.29 - Weekly Pivot

134.50 - Intraday Resistance

135.23 - WR1

135.31 - Technical Resistance

Trading recommendations:

Daytraders should consider opening sell orders from the current levels with SL just above the level of 134.51 ant TP at the level of 133.65. Please notice that even greater sell-off in this market can happen if the lower technical support at the level of 133.08 is violated.