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Technical analysis of EUR/JPY for August 18, 2014

General overview for 18/08/2014 09:30 CET


The corrective cycle in wave 2 of 3 has been completed in a zig-zag shape. Now, this pair is in an impulsive decline and only a breakout above the level of 138.02 invalidates the bearish outlook. The orange rectangular zone is the target for green wave (ii) to complete and then a decline should resume. The first clue supporting this view is the level of the 136.75 breakout. The mid-term bias is still bearish.


Support/Resistance:


135.71 - Technical Support


135.77 - WS2


136.45 - WS1


136.75 - Intraday Support


137.04 - Weekly Pivot


137.06 - Intraday Resistance


137.70 - WR1


138.02 - Swing High | Red Impulsive COunt Invalidation Level|


138.29 - WR2


Trading recommendations:


Day traders and swing traders should consider opening SELL orders form the level of 137.40 with SL above the level of 137.60 and TP below the level of 136.45.


eurjpy_h1.jpgThe material has been provided by InstaForex Company - www.instaforex.com