FX.co ★ Technical analysis of EUR/JPY for Febuary 20, 2014

General overview for 20/02/2014 10:30 CET

The blue impulsive bullish count has been invalidated and now the alternate count is developing. This count indicates more complex and time consuming wave (ii) green as the overall impulsive structure has not been finished. It is still possible that wave c green is in progress now and further price deterioration is being anticipated to a minimum level of 138.57. The key level to the upside is red impulsive count invalidation line at the level of 140.02.

Currently, the price is in corrective cycle of sub-wave 4 red of a minor intraday degree and there is a possibility that golden trend line might be tested from the bottom and get rejected. The downtrend would have resume then and this market would go lower.

Only a clear break out above the key level invalidates the bearish impulsive count.

Support/Resistance:

140.22 - WR1

140.02 - Key Level

139.49 - Intraday Resistance

139.42 - Weekly Pivot

139.18 - 35%Fibo

138.57 - WS1

Trading recommendations:

As long as the golden trend line provides the resistance for the price, sell positions should be opened with SL above the level of 140.02 and TP at the level of 138.57 with a possible downside extension.