FX.co ★ Technical analysis of EUR/JPY for August 26, 2014

General overview for 26/08/2014 14:30 CET

There are some first indications that the impulsive green wave (i) has been completed and now the market is in a corrective cycle of green wave (ii). Any breakout below the level of 136.98 confirms the bearish bias and lower prices should be expected soon. Moreover, breakout below the level of 136.74 is even more negative as this is a bearish zone entrance. On the other hand, only a breakout above the last high at the level of 138.02 invalidates the bearish impulsive outlook.

Support/Resistance:

138.05 - WR1

138.02 - Swing High |Invalidation Level|

137.98 - Wave 2 of 3 High

137.42 - Weekly Pivot

137.25 - Intraday Resistance

136.85 - WS1

136.70 - Bearish Zone Level

136.24 - WS2

Trading recommendations:

The situation hasn't changed much since yesterday, so the short orders from the last week with SL above the level of 138.02 should be still kept open. New short orders can be added if the level of 136.98 is violated again, with the same SL as before and TP at the level of 136.70 with a quite possible downside extension to the level of 135.70.