FX.co ★ Technical analysis of EUR/JPY for September 16, 2014

General overview for 16/09/2014 11:30 CET

The market has bounced from the support level as anticipated and now the intraday range zone has been created between the levels of 138.42 (intraday support) and 138.83 (intraday resistance). Despite the fact, the first leg down from the wave B top at the level of 139.16 might be counted as five wave bearish impulsive decline, there is still no confirmation of any further impulsive downside wave development. The price is trading sideways and it might be counted as corrective wave ii but only a valid breakout below the key level zone makes that assumption more probable than any other.

Support/Resistance:
139.16 - 139.25 - Technical Resistance Zone
138.83 - Intraday Resistance
138.42 - Intraday Support
138.30 - Weekly Pivot
138.25 - Technical Support
137.48 - WS1 Trading recommendations:
Not much to add here: all swing traders that are still keeping buy orders from last week should get ready to close the positions and wait for a further wave progression as the trend looks mature and reversal/correction is possible. Breakout below the level of 138.25 is the first strong confirmation that the top for wave B black is in place at the level of 139.16.