General overview for 04/06/2014 09:30 CET
The situation on EUR/JPY on bigger time frames like daily and weekly is not so simple as it seems to be. After spending some time on more detailed analysis the conclusion is two counts with a major difference between them: the placement of wave 1 top. Another slight difference between the counts is in wave 4 purple placement: is it finished or not? This is why there are two counts now available with the main one tracing the wave progression on wave 4 purple as there are two more waves missing to complete the triangle, and the alternate one with big wave 1 blue top in place at the level of 145.70. The invalidation of the main count (ABCDE triangle wave 4) comes with the level of 135.46 violation. The invalidation of the (W)(X)(Y) complex correction wave 2 comes with the level of 137.97 violation. On lower time frames the impulsive wave development to the upside looks finished as the top for wave A black seems to be in place now and the corrective downward progression is expected now.
Support/Resistance:
140.16 - WR2
139.86 - 139.94 - Technical Resistance
139.49 - WR1
139.47 - Intraday Support
139.35 - Technical Support
139.07 - Wave 4 red Low
138.74 - Weekly Pivot
Trading recommendations:
Daytraders might consider going short from the current price levels with SL above the level of 140.00 and TP at the level of 139.47 with a possible extension downside to the level of 139.07.
