FX.co ★ Technical analysis of EUR/JPY for August 14, 2014

General overview for 14/08/2014 09:40 CET

As anticipated yesterday, the top for the corrective structure in wave (ii) green is likely to be completed. Besides, the weekly pivot breakout to the downside is the first confirmation of this scenario. In that case, the intraday support at the level of 136.35 is the first target level. But it is very possible that this level will be broken and the market will try to test the recent green wave (i) low as the general outlook is still very bearish.

Support/Resistance:

135.71 - Swing Low

135.80 - WS1

136.35 - Target Level |Intraday Support|

136.85 - Weekly Pivot

137.10 - Intraday Resistance

137.55 - Technical Resistance

Trading recommendations:

Day traders should close the long orders opened at the beginning of the week and open short orders from the level of 136.85 with SL above the level of 137.16 and TP at the level of 136.35 with a quite possible downside extension to the level of 135.72.