FX.co ★ EUR/JPY H1 Analysis for September 9, 2013

General overview for 09/09/2013 10:00 CET

The price has gap up after the weekend and now it is trying to hold the gap.

Any kind of acceleration to the downside after the gap is closed would confirm the impulsive bearish scenario. For more confirmation of downward wave i at 129.87 should be taken out and DEMAND area of 129.26 - 129.40 should be exposed for a test.

In higher time frames there is still a trendline that acts as resistance for the price (green line) and as long as there is no break out of this line this pair is still in complex triangle consolidation. That means the beige rectangle in the chart must be broken to confirm a breakout. A high of this zone is the 132.42 level.

Support/Resistance:

132.61 - WR1

132.42 - Swing High

132.16 - Intraday High

131.19 - Weekly Pivot

131.01 - Intraday Support

130.80 - Gap Low

130.26 - WS1

129.87 - Intraday Support

129.26 - 129.40 - DEMAND ZONE

Trading recommendations:

If the low of the gap will not hold, then shorts should be in play for intraday scalping entry with SL above the gap high and TP at 130.26 and even 129.87.