FX.co ★ Technical analysis of EUR/JPY for November 21, 2014

General overview for 21/11/2014 07:50 CET

The corrective cycle is developing just as anticipated. Now, the question remains whether this corrective wave (iv) green has been completed or if this is only the beginning of more complex and time-consuming corrective cycle in shape of a triangle. So far, the price action that would confirm the bottom in wave (iv) green and immediate trend reversal would be an impulsive wave progression to the upside, that would easily violate the golden channel and make a new high above the level of 149.15. On the other hand, any new low below the level of 147.46 would mean the market might make more complex and time-consuming correction. The key level here that should act as support is the level of 146.53.

Support/Resistance:

151.50 - 152.60 - Projected Target Level For Wave (v) Green (Typical)

149.37 - 149.57 - Projected Target Level For Wave (v) Green (Minimum)

152.02 - WR3

149.14 - Local High

149.05 - WR2

148.37 - Intraday Resistance

148.01 - WR1

147.46 - Intraday Support

146.53 - Technical Support

145.02 - Weekly Pivot

Trading recommendations:

As advised yesterday, the first level to join the uptrend should be at the level of 147.42. There is nothing wrong to still keep this trade running, but please set the SL rather tight, like 20-30 pips for intraday trading as the corrective cycle might get more complex if the intraday support is violated. TP level should be placed at the level of 148.37 - 149.57 zone.