FX.co ★ Technical analysis of EUR/JPY for April 8, 2015

General overview for 08/04/2015 11:00 CET

The corrective cycle in wave (b) blue does not looks completed yet as the impulsive wave progression to the upside looks rather muted now. This is why the supply zone between the levels of 130.79 - 130.61 should be watched, because breakout higher is the first clue that a low for wave y black is in place at the level of 129.90. In case of failure in this zone, the next possible scenario is a deeper retracement in form of a triple three pattern that might reach the 61% Fibo at the level of 129.51 and bounce/reverse from there. There is still one more uncompleted wave to the upside - wave (c) blue and the near-term bias is bullish.

Support/Resistance:

129.51 - 61%Fibo

129.90 - Wave y Low

130.61 - 130.79 - Supply Zone

131.30 - Swing High

Trading recommendations:

Daytraders should still consider openning buy orders or adding to long positions if the level of 130.79 is violated with h1 candle close above it. SL should be placed at the level of 129.89 and TP at the level of 131.30.