FX.co ★ Technical analysis of EUR/JPY for Febuary 22, 2016

General overview for 22/02/2016:

The higher time frame wave progression shows a complex and time-consuming double-three pattern labeled on the chart as ABC-X-ABC. The leg C of the pattern looks completed and the market might start to rally any time soon. Nevertheless, it is worth to mention, that this pattern might evolve to even more complex correction called triple three, which will be labeled as ABC-X-ABC-X-ABC. That means there is another big ABC leg to be made according to this scenario. On the intraday time frame, the possible low for the wave B blue might be in place, but to confirm this scenario the market must break out above the level of 128.27. Otherwise bears are still in control.

Support/Resistance:

123.59 - WS1

125.02 - Intraday Support

125.76 - Intraday Resistance

125.90 - Weekly Pivot

126.75 - WR1

128.27 - Technical Resistance

Trading recommendations:

Day traders should refrain from trading and wait for a better trading setup to occur in the nearest term.