EUR/JPY analysis for May 08, 2018

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Recently, the EUR/JPY pair has been trading downwards. The price tested the level of 129.58. According to the H4 time – frame, I found strong selling pressure on the market, which is a sign that buying looks risky. The rising wedge from the background is still an active pattern and projective target is set at the price of 129.00. I also found a rejection from the resistance at the price of 130.45, which is another sign of weakness. My advice is to watch for potential selling opportunities on the rallies. The downward target is set at the price of 129.00.

Resistance levels:

R1: 130.45

R2: 130.84

R3: 131.09

Support levels:

S1: 129.81

S2: 129.56

S3: 129.18

Trading recommendations for today: watch for potential selling opportunities.

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