FX.co ★ Technical analysis of EUR/JPY for May 9, 2016

General overview for 09/05/2016:

The most appropriate pattern in current wave (c) blue that can be recognized now is an expansion of the ending diagonal termination structure. This means the market will likely make one more low below the intraday support at the level of 121.47 in order to complete the wave (c). The projected target might even extend to the level of 120.33 before any meaningful reversal occurs. The fact that the market is still trading inside of the bearish zone supports this view.

Support/Resistance:

120.33 - WS2

121.20 - WS1

121.47 - Intraday Support

122.36 - Weekly Pivot

123.23 - WR1

123.53 - Intraday Resistance

124.37 - WR2

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).