General overview for 01/08/2013 11:30 CET:
Long time anticipated Bull Flag technical pattern target projection at 132.45 has been hit and price is now in reverse mode as there are some indications that a corrective wave (b) cycle might has been finished: price broken out below red channel trend line in five impulsive waves and now it is trying to test the channel line from the downside. Price is expected to fail here and continue lower in impulsive wave development and the first clue will be a break of longer time frame golden trend line.
Judging by the wave structure on H1 time frame it looks like the overall corrective cycle might get more complex here so please consider more whipsaws while trading the correction. Price is now on Weekly Pivot level area and Intraday Resistance zone @ 130.75 - 130.98 that had capped the rally. However, there is a possibility of a slight further advance to the 61% Fibo area if the Weekly Pivot level will get broken.
Support/Resistance:
132.72 - Swing High
131.90 - WR1
131.32 - 131.42 - 61%Fibo | SUPPLY ZONE |
130.98 - Weekly Pivot
130.75 - 130.98 - Intraday Resistance Zone
129.33 - Intraday Support level
129.23 - WS1
Trading recommendations:
Selling the Weekly Pivot level at 131.98 with SL above 61% Fibo at 131.42 in anticipation of a new low to come produce a min. 5:1 R/R trade.
The material has been provided by InstaForex Company - www.instaforex.com
For detail explanation and best discovery on market trends you may visit via EUR/JPY H1 and H4 analysys for 01/08/2013 . Thanks for your support on EUR/JPY H1 and H4 analysys for 01/08/2013
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