FX.co ★ EUR/JPY H1 analysis for 13/08/2013

General overview for 13/08/2013 06:30 CET

The price has broken out of the channel and is about to test the last resistance level at 129.80. This zone looks like strong resistance due to a confluence of technical levels, 50%Fibo, supply zone and WR1. It is possible for a price to get through this zone, but then, this kind of price action would make Irregular Flat correction in wave (ii) more expanded in price and time. Only a break of 131.11 level would change the current bearish count. Bias is still to the downside.

Support/Resistance:

127.99 - 128.22 - DEMAND ZONE

128.91 - Intraday Support

129.70 - Wave (ii) high | Technical Resistamce |

129.80 - Intraday Resistance

129.95 - 50%Fibo

130.13 - WR1

131.08 - 78%Fibo

Trading recommendations:

Shorting the final stages of either wave c of wave ii OR wave (c) of wave (ii) should be played: If 129.70 is broken bearish impulsive count (wave c of wave ii) is invalidated and the first good level to short is 130.13-130.40 with SL above 130.75.