28.05.201511:33 Forex Analysis & Reviews: Technical analysis of EUR/JPY for May 28, 2015

General overview for 28/05/2015 11:25 CET

The immediate downward impulsive wave progression had been invalidated due to wave one and wave two overlap. The current count incorporates the new price action into new, slightly changed labeling. According to this new count, the market is at a crucial level right now. The recent drop might still be counted as a five-wave decline to the level of 133.09. So, an upward rally would be a corrective cycle that has been labeled as abc pattern ending into the Fibonacci zone between the levels of 135.47 - 135.67. This would be an ideal level for the market to resume the downtrend and a breakout below the weekly pivot point. On the other hand, any further rally continuation above the level of 135.66 will be considered bullish. There is a possibility that the recent high at the level of 136.95 might be tested soon. The near-term to mid-term outlook is still bearish and only a sustained breakout above the recent local swing high would be considered to be a bias change to bullish.

Support/Resistance:

136.12 - 78%Fibo

135.66 - 135.47 - Key Zone

135.34 - Intraday Support

135.23 - WR1

Trading recommendations:

Daytraders should consider opening sell orders from the current market levels with SL orders should be placed very tight above the level of 135.67 and TP orders should be placed at the level of 135.08 with a possible downside extension.