FX.co ★ EUR/JPY H1 analysis for August 29, 2013

General overview fro 29/08/2013 08:30 CET

As it was indicated yesterday, the lower channel line has been tested, but it failed, and currently the price is consolidating after testing Intraday Supply at the 130.40 - 130.54 zone.

This consolidation looks like a very messy triangle pattern and it may even turn out to be wave X, when it is finished. Downside breakout below the low of wave W may be in play later.

There are two key levels in the chart: one is former Supply Breakout Zone at 130.82 - 130.02 and the second one is Demand Zone at 129.26 - 129.40. The first one is important for bears - any price above this level and definitely above 131.28 is bullish. The second one is the key level to the downside and is important for bulls - if it is broken then next support will be the 128.91 area.

Support/Resistance:

128.91 - Technical Support | Lower Multi-Week Triangle Level

129.26 - 129.40 - DEMAND ZONE | INVALIDATON ZONE |Key Level For Bulls|

129.63 - Intraday Support

130.28 - Technical Resistance | Key Level |

130.43 - WS1 | Intraday Supply | Golden Trend Line Resistance Zone |

130.82 - 130.02 - Key Level For Bears

131.23 - Technical Resistance

131.42 - Weekly Pivot

Trading recommendations:

For intraday scalping short positions are favoured from the area of 130.41 - 130.55 with SL just above this level and potential TP1 at 129.66 and TP2 at 129.40.