FX.co ★ Technical analysis of EUR/JPY for November 8, 2016

General overview for 07/11/2016:

As anticipated yesterday, the market is now in a corrective cycle labeled as the wave 4 (purple). This means the whole structure from the low at the level of 114.01 might be considered impulsive, so the invalidation level is at the top of the purple wave 1 at the level of 114.71. Thus, any violation of this level will invalidate the bullish impulsive count. The triangle structure for the purple wave 4 is currently in progress as well, so the intraday horizontal price action is being expected.

Support/Resistance:

115.88 - Intraday Resistance

115.77 - WR1

115.29 - Intraday Support

114.89 - Weekly Pivot

114.71 - Invalidation Level

114.12 - WS1

113.22 - WS2

Trading recommendations:

The impulsive structure does not look completed yet, so day traders should consider opening buy orders with SL set just below the level of 114.71.