09.08.201310:38 Forex Analysis & Reviews: EUR/JPY H1 analysis for 09/08/2013

General overview for 09/08/2013 08:00 CET:

Demand area was hit and the price bounced up to corrective cycle of wave (ii).

There is a possibility that the correction is over (the main count) and to confirm this point of view, the price should break the Intraday Support at 128.90 and make a new low. Otherwise (alternate count) the last upward wave might be only the first leg of more deeper correction and to confirm this, the price should move above the Intraday Resistance at 129.78.

Nevertheless, to keep the bearish momentum, the retrace in wave (ii) should not be deep too much and the reasonable level for this correction would be WS1 level of 130.13. Anything above this level would decrease the downward momentum in this impulsive wave progression.

Support/Resistance:

127.99 - 128.22 - DEMAND AREA | Swing Low |

128.43 - WS2

128.90 - Intraday Support

129.59 - Technical Resistance

129.79 - Intraday Resistance

130.13 - WS1

130.71 - Technical Resistance

131.03 - Weekly Pivot

131.94 - Swing High

Trading recommendations:

According to the higher time frame cycle bias is to the downside, so short positions should be in play: the first level to enter is at 129.58 - 129.79 zone, with SL just above Intraday Resistance and potential TP below 129.22.