FX.co ★ Technical analysis of EUR/JPY for August 29, 2014

General overview for 29/-8/2014 14:30 CET

Unfortunately, there is something else going on than a simple downward impulsive wave development. It looks like the corrective cycle is going to be more complex and time-consuming. Due to invalidation of several important rules, the current count has been updated and the bearish impulsive count has been cancelled. According to the new labeling, the are chances that after the downside failure the higher prices will be seen as the corrective cycle is not completed. The current labeling is WXY brown complex triple three structure in red wave 2 and there is one more wave to the upside missing to complete the correction.

Support/Resistance:

136.87 - Intraday Support

137.28 - Intraday Resistance

137.42 - Weekly Pivot

137.98 - Technical Resistance

Trading recommendations:

The short orders opened at the beginning of this week should be closed and traders should refrain from trading until a clear pattern emerges.