FX.co ★ Technical analysis of EUR/JPY for Febuary 28, 2014

General overview for 28/02/2014 08:45 CET

The impulsive bullish wave development has been invalidated due to wave (ii) overlapping the beginning of wave (i) and now new count has been posted. In this new count the overall corrective structure after wave (1) blue top is getting more complex ant time consuming. The current wave progression lacks one more push to the downside in wave Y brown and the target for that wave is at the level of 138.14. On the other hand the alternate count indicates a possibility of a sooner than expected wave Y brown completion at the level of 138.83 (alt:Y) and a possible uptrend resumption if the level of 140.30 is broken. Nevertheless the current outlook is bearish and more downside is expected as long as red trendline is not violated and the level of 139.72 provides the resistance for the price.

Support/Resistance:

140.52 - Weekly pivot

140.30 - Technical resistance

139.83 - WS1

139.63 - Intraday resistance

139.10 - Intraday support

138.76 - 50%Fibo

138.49 - WS2

138.14 - 61%Fibo

Trading recommendations:

As long as the level of 139.63 provides the resistance sell orders should be opened with SL above the level of 139.83 and TP at the level of 139.10 with possible downside extension to the level of 138.14.