FX.co ★ Technical analysis of EUR/JPY for September 5, 2014

General overview for 05/09/2014 09:45 CET

The black wave Y has been completed earlier than expected and yesterday's news had caused havoc on the markets, resulting in unfinished downward impulsive progression. Currently, the market is in wave -iv- of a larger cycle green wave (iii), so lower prices are expected. Please, notice that the corrective cycle might go as high as the weekly pivot at the level of 136.89 and then fail and reverse. This possibility has been labeled as an alternative count. However, the first target for the bears is at the level of 135.71.

Support/Resistance:

135.64 - WS2

135.71 - Technical Support

135.96 - Intraday Support | Key Level |

136.24 - WR1

136.59 - Intraday Resistance

136.89 - Weekly Pivot

Trading recommendations:

Sell any upside rally with longer term SL above the level of 138.35. TP is open for now.