FX.co ★ Technical analysis of EUR/JPY for September 17, 2014

General overview for 17/09/2014 11:10 CET
The corrective cycle in shape of an abc irregular flat is looking completed and a downtrend should resume soon now. Please notice, that any breakout higher above the level of 139.17 will invalidate the green bearish count and will make another high in black wave B possible. On the other hand, the downside will be confirmed if the grey area labeled as a supply breakthrough zone will be clearly violated. Otherwise the corrective cycle might get more complex and time-consuming.

Support/Resistance:
139.16 - 139.25 - Technical Resistance Zone |Intraday Resistance|Key Level|
138.77 - Intraday Support
138.42 - Intraday Support
138.30 - Weekly Pivot
138.25 - Technical Support
137.48 - WS1
Trading recommendations:
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.
Day traders that went short recently should place the SL order above the level of 139.17 with TP open for now. New high invalidates this idea.