FX.co ★ EUR/JPY H1 analysys for 05/08/2013

General overview for 05/08/2013 07:30 CET:

The KEY ZONE I mentioned in my last analysis held perfectly, so congratulation to anyone who made some profit on that trade.
The current picture is very bearish now and wave progression suggests more impulsive decline. Only a breakout of the golden channel and eventual new high above 132.05 could invalidate this count. Otherwise, the first obstacle for bears is Intraday Support zone at 130.75 - 130.95. A break of that zone is needed to confirm further weakness.

Support/Resistance:

132.77 - WR1

131.94 - Swing High

131.04 - Weekly Pivot | 50% Fibo | Key Level |

130.19 - WS1

129.32 - Swing Low

Trading recommendation:

As long as the price stays inside the descending golden channel, short side of the market is preffered: short Weekly Pivot area at 131.04 with SL above the latest channel line, in anticipation of wave iii to hit 130.19-130.00 zone. Channel breakout invalidates the trade.