FX.co ★ Technical analysis of EUR/JPY for April 30, 2015

General overview for 30-04-2015 07:20 CET

The upward extension in this pair has hit the level of 132.89, just slightly above the WR3 at the level of 132.62, and then the market reversed. The price is still trading inside the bullish zone between the levels of 130.10 and 132.89, but it is quite possible that the intermediate top for wave B black has been made and now the market might start to develop another wave down to complete the overall structure. To confirm this scenario, the price must break out below the intraday support at the level of 131.29 and hit the support at the level of 130.10. Nevertheless, this kind of price action is still not enough to confirm that the longer-term top is in place. Only a sustained breakout below the level of 128.82 is a real game-changer for this pair.

Support/Resistance:

132.89 - Local High

132.63 - WR3

131.77 - Intraday Resistance

131.64 - WR2

131.29 - intraday Support

130.51 - WR1

130.10 - Projected Target

Trading recommendations:

Daytraders and swingtraders should consider opening sell orders from the current levels or wait for a breakout below the level of 131.29 as a confirmation of a valid sell setup. Rather tight SL should be used here (20-30 pips or above the level of 131.77) and TP should be placed at the level of 131.10.