Analysis of EUR/JPY for August 18, 2017

analytics5996d8dac67bc.png

Recently, the EUR/JPY has been trading downwards. As I expected, the price tested the level of 127.83 (yesterday's first target). According to the 4H time frame, I found a breakout of support at 128.05, which is a sign that buying looks risky and that sellers are in control. I found weakness in the background (fake breakout, broken rising wedge), so my advice is to watch or potential selling opportunities. The downward targets are set at the price of 127.50 and 126.50.

Resistance levels:

R1: 129.35

R2: 130.25

R3: 130.80

Support levels:

S1: 127.95

S2: 127.40

S3: 126.50

Trading recommendations for today: watch for potential selling opportunities.

The material has been provided by InstaForex Company - www.instaforex.com