FX.co ★ EUR/JPY H1 analysis for December 19, 2013

General overview for 19/12/2013 08:45 CET

The main count has been slightly re-labeled and main change was to move wave iii black top at 142.70 after H&S pattern failed and neck line support area has been provising strong buying opportunietes.

Currently there are two waves of the corrective cycle wave iv back that are finished: wave (a) and wave (b) blue. Now there is one more wave to the downside left to complete the cycle. Due to the internal wave development a possible pattern in wave iv looks like Regular Flat correction with a target level for wave (c) blue at 140.90 support area again.

In case of further wave progression to the upside and 142.88 breakout the corrective pattern might become a Running Flat. The Key Level of SUPPLY must be broken and tested before any impulsove wave will develop.

Support/Resistance:

142.88 - Swing High

142.65 - 142.80 - SUPPLY ZONE

142.63 - WR1

142.30 - Intraday Resistance

141.85 - Intraday Support

141.77 - Weekly Pivot

140.90 - Technical Support

Trading recommendations:

Bias is to the downside to complete the corrective cycle so sell any rallys between 142.63-142.88 area with SL just above the swing high and TP at 141.71 and 140.90.