FX.co ★ Technical analysis of EUR/JPY for June 6, 2014

General overview for 06/06/2014 09:30 CET

The current wave development has two possible wave progressions indicated on the chart and the difference between them is in placement of wave (c) blue bottom. The first possibility places the bottom at the level of 139.35 and the whole correction would be running flat shape. The second possibility places the bottom at the level of 138.63 and the whole correction would be a regular flat shape. Please notice that any breakout higher means the bottom for wave B black is in place and the main count is invalidated.

Support/Resistance:

140.11 - WR2

139.86 - 139.97 - Technical Resistance ZOne

139.70 - Intraday Resistance

139.50 - WR1

139.35 - Wave (c) Target

138.73 - Weekly Pivot

138.62 - Intraday Support

Trading recommendations:

Because the Elliott Wave labeling has two possible counts on the chart, it is advised to wait for a clear breakout either above the level of 140.00 to go long, or below the level of 139.35 to go long as well (with a very tight stop loss in case the market would try to make more deeper correction).