FX.co ★ EUR/JPY H1 analysis for 12/08/2013

General overview for 12/08/2013 11:00 CET:

A five wave decline in first impulsive wave i to the downside has been done and now the price is in corrective cycle wave ii.

23%Fibo resistance and golden trend line resistance has been hit as well and, currently, theprice has been capped at the level of 128.91, that will act as Intraday Resistance. In case this level is broken, next resistance is Weekly Pivot level at 129.17. Anyway, as long as Intraday Resistance level of 129.79 is not taken out the bias is very bearish.

To confirm more wekaness, the price must break out to the downside of the DEMAND zone at 127.99 - 128.22.

Support/Resistance:

127.99 - 128.22 - DEMAND area

128.91 - Intraday Resistance

129.17 - Weekly Pivot

129.48 - 38%Fibo

129.78 - Intraday Resistance | Impulsive bearish count invalidation level |

130.16 - WR1

Trading recommendations:

As long as intraday resistance level of 128.91 is not broken, short side of the market should be in play, with SL very tightly just above the level.

In case this level is broken, then shorting 38%Fibo at 129.48 with SL above 129.78 should be in play.

Targets for both recommendations are below DEMAND zone ( below 128.00).