Technical analysis of EUR/JPY for May 10, 2016

General overview for 10/05/2016:

The wave (b) of the internal corrective cycle is getting a little more complex than previously though. Currently it looks like an incomplete irregular corrective pattern with three possible targets for the wave c of wave (c): minimal, typical and maximal. Nevertheless, when the corrective cycle is complete, there is still one more wave to the downside to be made in order to complete the corrective structure of the higher degree.

Support/Resistance:

120.33 - WS2

121.20 - WS1

122.36 - Weekly Pivot

123.23 - WR1

123.53 - Intraday Support

124.37 - WR2

124.66 - Intraday Resistance

125.25 - WR3

Trading recommendations:

Day traders should consider opening sell orders from the current market levels with a tight SL (10-15 pips) and TP open for now (might extend to around 120.33). Please use a tight SL because there are three different targets for the wave (b) to complete and at this stage of progression it is impossible to tell on which one the wave ends.