21.08.201511:48 Forex Analysis & Reviews: Technical analysis of EUR/JPY for August 21, 2015

General overview for 21/08/2015 11:40 CET

The double zig-zag pattern in wave X brown looks completed, but the market might still try to test the intraday resistance at the level of 138.84 one more time. Any breakout higher above this level invalidates the count and makes the weekly pivot resistance at the level of 139.45 the first target for the up wave. On the other hand, a clear breakout below the intraday support at the level of 138.12 supports the bearish outlook.

Support/Resistance:

138.84 - Swing High | Intraday Resistance|

138.12 - Intraday Support

137.78 - Weekly Pivot

137.06 - Intraday Support (strong)

Trading recommendations:

The sell orders from yesterday have not been profitable and the small loss of 10-15 pips has been accounted. Nevertheless, daytraders should still consider opening a sell orders from the level of 138.84 with tight SL (10-15 pips) and TP at the level of 138.12. Any clear impulsive breakout higher above the level of 138.84 with hourly candle close above that level is bullish and all shorts should be closed immediately!