FX.co ★ Technical analysis of EUR/JPY for Febuary 26, 2015

General overview for 26/02/2015 07:45 CET

As anticipated yesterday, the wave b purple is getting more complex and time-consuming as it is evolving into some kind of a triangle pattern. It looks like the wave -e- black is missing in this structure and upward breakout is still expected when the correction in wave b purple is completed. Please keep an eye on the intraday support at the level of 134.43 as any breakout lower would be intraday bearish. The next level of support at 133.55 might get tested before the overall corrective structure is completed. On the other hand, the upside targets are still the same.

Support/Resistance:

137.25 - 137.64 - Projected Target Zone

136.90 - WR1

135.58 - Intraday Resistance

135.21 - Weekly Pivot

134.43 - Intraday Support

134.21 - WS1

133.55 - Intraday Support

Trading recommendations:

The market is still trading inside the range zone, but daytraders should consider opening buy orders only when the level of 135.88 is violated with relatively tight SL (20-30 pips) and TP at the level of 137.25 - 137.64. Patience please, as the wave b purple is about to be completed.