FX.co ★ Technical analysis of EUR/JPY for July 31, 2014

General overview for 31/07/2014 08:50 CET

After breakout above the invalidation line, the main scenario has been invalidated and prices went higher in a corrective cycle. The shape of corrective wave progression looks so far as a simple (a)(b)(c) and one more small wave to the upside is missing to complete the correction. The target for this wave is between the levels of 138.02 - 138.08. Then either reversal to the downside is next, or the correction will get more complicated and time-consuming.

Support/Resistance:

138.19 - WR3

138.02 - 138.08 - Wave (v) Target Zone

137.84 - Intraday Resistance

137.76 - WR2

137.49 - 137.62 - Technical Support

137.33 - Intraday Support

Trading recommendations:

Day traders should consider opening buy positions from the current price levels with SL below the level of 137.49 and TP at the level of 138.02 with a possible extension to 138.19.