FX.co ★ EUR/JPY H1 analysis for August 20, 2013

General overview for 20/08/2013 08:00 CET

Ending Diagonal wave v has been done and price has made first impulsive decline to the downside.

The correction is expected now and the first level is round number of 130.00. The most optimal level for correction to end is 130.50.

The Key Level now is the lower wave iv Triangle area, 129.49 - 129.56, that must be broken to confirm further weakness. If this level is broken, next one is Technical Support at 128.91.

Support/Resistance:

127.96 - 128.22 - DEMAND ZONE

128.81 - WS1

128.91 - Technical Support

129.49 - 129.56 - Intraday Demand Area | KEY LEVEL |

129.76 - Weekly Pivot

130.50 - Intraday Resistance

131.03 - Invalidation Line | Intraday High |

Trading recommendations:

Any Price below the invalidation line should be sold - the first entry level is 130.00. If it is broken, then next one is 130.50.

If You are still short following my yestrday's recommendation, adding to short at 130.00 (OR 130.50) seems to be good idea if You are swing trader.

If the KEY ZONE is broken, then TP levels are 128.91 and even lower DEMAND ZONE.