FX.co ★ EUR/JPY H1 and H4 Analysis for August 26, 2013

General overview for 26/08/2013 10:00 CET:

The longer-term green trendline of a possible triangle pattern had provided strong resistance for the price.

The area of 132.42 is a cluster of several market geometry levels and it is providing strong resistance.

Currently, more downside price action is expected, not nesessarly in impulsive form, as we should consider a larger TF triangle possible forming.

The first levels are prone to test Weekly Pivot at 131.42 and the first technical support at 131.23.

The key level area is at 130.83 - 130.03 and we will be able to draw more obvious conclusion when the price gets there.

Only a break out of the green triangle line invalidates the view.

Support/Resistance:

132.42 - Swing High

131.87 - Technical Resistance

131.42 - Weekly Pivot

131.23 - Technical Support

130.83 - 131.03 - Supply Breakthrough Zone | Key Level |

Trading recommendations:

Short positions from the current levels with SL above the swing high should be in play. Potential TP is the key zone of 130.83 - 131.03.