FX.co ★ Technical analysis of EUR/JPY for June 10, 2014

General overview for 10/06/2014 08:40 CET

The wave structure is developing in the anticipated way, creating irregular flat correction in wave B black. Nevertheless, this is only a simple corrective cycle scenario and traders must keep in mind that the correction might evolve into more complex pattern. To confirm the corrective cycle in wave B black is completed, the impulsive breakout above the level of 140.07 is needed, otherwise the cycle will still be in progress. Currently, one more internal sub-wave is needed to complete the wave (c) blue of wave B black, and an impulsive rebound to the upside is anticipated then. The key level for this scenario is intraday resistance at the level of 139.25.

Support/Resistance:

140.07 - Swing High

139.56 - Weekly Pivot

139.25 - Intraday Resistance

139.15 - WS1

138.89 - Wave v Target

138.67 - Wave v Target#2

138.50 - 138.57 - Supply Breakthrough Zone

138.24 - WS2

Trading recommendations:

Daytraders and swing traders should consider opening buy orders from two levels:

-aggressive entry - buy limit orders from the levels of 138.89 or 138.67 with SL below the level of138.50 and TP open (above 140.07 anyway).

-confirmed entry - buy stop orders from the level of 139.28 with SL below the level of 138.50 and TP open (above 140.07 anyway).