FX.co ★ Technical analysis of EUR/JPY for July 22, 2014

General overview for 22/07/2014 08:30 CET

As anticipated yesterday, the market is in a corrective upward cycle of green wave c or wave alt:(iv). Currently, this pair is trading just below the weekly pivot at the level of 137.32, and it will act as resistance here. Moreover, the next hurdle for the market is the intraday resistance at the level of 137.41. Golden trendline dynamic resistance is just above that as well. The upside then seems to be pretty limited. Lower prices are still expected in the near term. Please notice, that any breakout above the level of 137.50 invalidates the green alternate count.

Support/Resistance:

139.05 - WR2

138.43 - Wave 4 Top

137.91 - WR1

137.48 - 137.63 - Techncial Resistance

137.32 - Weekly Pivot

137.41 - Intraday Resistance

136.76 - Intraday Support

136.17 - WS1

136.07 - Wave alt.(v) Target Level

Trading recommendations:

The current price action looks clearly corrective and lower prices are expected in the near term anyway. So, day traders should consider opening short orders from the current price levels, with SL above the level of 137.64 and TP below the level of 136.90.