FX.co ★ EUR/JPY H1 H4 analysis for 07/08/2013

General overview for 07/08/2013 09:00 CET:

Intraday Resistance area mentioned yesterday was not broken, in fact the price did not even touch the level of 132.75.

It looks like the price might be developing the extended wave v to the downside now with first target at 128.55. Then some corrective price action is expected that shoudn't go above 129.80 level to keep the bullish momentum intact. The levels at 129.33-129.59 should provide strong resistance now.

target levels just below wave v are DEMAND area at 128.00 - 128.22. In case the price go to that low I expect some corrective reaction in this zone.

Support/Resistance:

131.94 - Swing High

131.03 - Weekly Pivot

130.13 - WS1

129.80 - Intraday Resistance

129.33-129.59 - Technical Resistance zone

128.55 - Wave v Target level

128.43 - WS2

129.00 - 128.22 - DEMAND ZONE

Trading recommendations:

When the price hits the target levels or even the DEMAND ZONE, yesterday's short positions should be closed and traders should prepare for more choppy price action in a corrective cycle. Long positions for intraday scalping from DEMAND area should be considered with SL just below 128.00, and potential TP at 128.43.