FX.co ★ Technical analysis of EUR/JPY for July 8, 2014

General overview for 08/07/2014 09:30 CET

The top for a wave 2 green at the level of 139.27 has been confirmed by the market when it broke the high of the wave 1 purple at the level of 138.48. The red trendline has been tested as well and a failure at the level of 138.70 is helping the bearish case. Currently, the intraday resistance at the level of 138.62 is the key intraday level of bears as the Elliott wave count suggest, that some upward move might happen the in internal corrective cycle. Then the downside wave progression should resume and lower price levels are anticipated.

Support/Resistance:

139.88 - WR2

139.32 - WR1

138.43 - 61%Fibo

138.62 - Intraday Resistance

138.73 - Weekly Pivot

138.14 - WS1

137.69 - Technical Support

137.54 - WS2

Trading recommendations:

The swing traders with active sell orders opened last week should still be kept open due to the lower price levels anticipation.

Daytraders as well should keep the short orders opened yesterday and wait for the TP at the level of 138.14 and possibly 137.69 to be hit.