FX.co ★ EUR/JPY H1 analysis for 14/08/2013

General overview for 14/08/2013 10:30

The pattern that fits the most to the current corrective wave (ii) is (a) (b) (c) Irregular Flat pattern and currently I'm looking for a potential top for the last wave (c) of wave (ii) to enter a short position for the best possible price.

There are two scenarios here - the difference is if the wave (v) has been finished or not:

SCENARIO 1: MAIN COUNT - Wave (v) has topped at 130.65 after abc Running Flat correction and currently impulsive wave developmnet to the downside should occur. Wave (v) was almost equal to wave (i) and almost hit 38% Fibo Extension at 130.79.

SCENARIO 2: ALTERNATE COUNT: Wave (v) has not been finished yet and it will hit the level of 130.79 before reversal will happen.

Break out below 129.70 ( low of wave a) will confirm the SCENARIO 1.

Any price above 130.65 (high of wave (v) ) will confirm SCENARIO 2.

Support/Resistance:

127.99 - 128.22 - DEMAND AREA

128.91 - Technical Support

129.17 - Weekly Pivot

129.70 Wave a Low

129.80 - Intraday Support

130.13 - WR1

130.41 - 61%Fibo

130.65 - Wave (v) High

130.79 - 38%Fibo Extension

131.08 - 78%Fibo

Trading recommendations:

Bieas is to the downside due to higher time frames wave progression, hence short side of the market should be played: entry at current levels looks fine but for more attractive entry traders should place a limit order at 130.65 OR 130.79 with SL above those levels.