06.07.201513:20 Forex Analysis & Reviews: Technical analysis of EUR/JPY for July 6, 2015

General overview for 06/07/2015 13:10 CET

The weekend retail gap had been filled as the market hit the level of 136.10. This recent leg down might be labeled as three wave abc green structure, so this would be the last wave down in the WXYXXZ triple three correction labeled as wave A blue. In that case, the next wave should be more complex and time-consuming wave B blue to the upside, but because there is no new low in the wave Z black ( below the level of 133.75), we need to wait for another confirmation. The next good indication of more bullish ( but choppy and full of whipsaws) wave progression to the upside would be a breakout above the level of 136.14. If that happens, the next resistance is seen at the level of 138.10. On the other hand, any breakout below the intraday support at the level of 134.55 would expose the recent swing low for a test.

Support/Resistance:

133.75 - Swing Low

134.55 - Intraday Support

134.97 - Weekly Pivot

136.14 - Intraday Resistance

136.35 - WR1

Trading recommendations:

Daytraders should wait for one of the important levels to be clearly broken and trade following the direction of the trend. Please notice the bias is still bearish, confirmed by weak RSI indicator readings.