FX.co ★ Technical analysis of EUR/JPY for August 12, 2015

General overview for 12/08/2015 10:00 CET

After breaking yesterday's high of the wave c purple at the level of 137.46, the main count was invalidated and the bullish impulsive count is currently the correct one. The wave progression to the upside looks completed and the whole (a)(b)(c) blue corrective cycle might be completed as well. However, there is no top confirmation from the price action and it can come only with intraday support breakout (at the level of 137.78), weekly pivot resistance breakout (at the level of 137.74), and overbalance level breakout (at the level of 137.50). Any failure to break out below this levels means that new highs should be seen soon.

Support/Resistance:

138.94 - WR3

138.69 - Intraday Resistance

138.12 - Longer TF Resistance

137.78 - Intraday Support

137.74 - WR2

137.50 - Overbalance Level

Trading recommendations:

Swingtraders and daytraders should note that the bigger corrective cycle might have been completed and any breakout below the level of 137.50 might be considered as bearish. Longer-term buy orders should be now closed or set for a trailing stop.