FX.co ★ EUR/JPY H1 analysis for August 16, 2013

General overview for 16/08/2013 08:30 CET:

As I recommended yesterday: if the price breaks golden trend line, one more high is possible with target at 130.79 (I was wrong 8 pips because wave (v) were equall length of wave (i), that was marked as light orange rectangles). Complex sideways price action turned out to be a Triangle wave (iv) and wave a low has been broken.

Then impulsive sell off happened in wave i and now the price is in corrective cycle wave ii that looks like Irregular Flat. Only a new high above 130.71 invalidate the count.

Support/Resistance:

130.71 - Swing High | Invalidation Level |

130.64 - Technical Resistance

130.13 - WR1

130.06 - 23%Fibo | Intraday Support |

129.17 - Weekly Pivot

128.91 - 129.01 - 61%Fibo and Technical Support Zone

127.99 - 128.22 - DEMAND ZONE

Trading recommendations:

As long as invalidation line at 130.71 is not broken short side of the market should be traded with SL above 130.71 and immediate TP at 129.40. Lower prices are very possibe in this setup.