FX.co ★ EUR/JPY H1 analysis for September 3, 2013

General outlook for 03/09/2013 10:30 CET

The price was unable to spike higher in last wave alt:v to the upside, so we observe this corrective movement downwards. Looks like price can not move above the golden trendline resistance and WR1 so far, so the upside might be limited. Price has broken intraday support level and 50%Fibo at 130.85 and now it is testing the brown trendline. There is one more level to be tested if this trendline do not hold and it is Key Level of support at 130.56. There is a Weekly Pivot just below it at 130.37.

If the recent price development to the upside is just a part of some more impulsive pattern, then the area of the key level should provide strong support for the price and it should make more higher highs.

However, if this zone is significantly broken (H1 close below the Weekly Pivot for example), then this might be a clue that the recent high is the top of beraish count wave E and more downside prices should be seen after the 129.26-129.4 Demand Area is broken.

Support/Resistance:

129.26 - 129.40 - DEMAND ZONE

130.37 - Weekly Pivot

130.56 - Technical Support

130.85 - Intraday Support

131.22 - 61%Fibo

131.45 - WR1

131.74 - 131.88 - Demand Breakthrough Area

Trading recommendations:

As long as Technical Support at 130.56 and Weekly Pivot at 130.37 holds, long side of the market sould be in play with SL just below weekly pivot and TP above 131.46.

For bulls, the target is 131.74- 131.88 zone.

For bears, the target is 129.26 - 129.40 zone.