Technical analysis of EUR/JPY for December 26, 2014
There are two potential scenarios for the present wave progression. The key scenario specify a finished corrective structure in wave 2 red and a probable start of the impulsive wave progress to the upside.
The another scenario suggests a more multifaceted structure in wave 2 red that is still moving to the downside and the current wave progression is a wave latex brown of the overall corrective structure.
That means, there is one more wave to the downside missing to complete this structure, and then an impetuous rally up is estimated.
The key level for both scenarios is at the level of 148.23 as any breakout higher favors key scenario, and any failure there favors the alternative scenario.
149.77 – Swing High
149.63 – WR2
148.23 – Bullish Zone Level
147.74 – WR1
147.11 – Intraday Resistance
146.34 – Weekly Pivot
145.70 – Technical Support
144.98 – Intraday Support
Until the golden trend line is not broken, the bias is bullish, and traders should think about opening buy orders only. The SL orders still should be placed below the 146.34 level, and TP orders should be placed at the level of 148.23.
Please notice the liquidity is getting low, and the market moves might get very sharp and sudden in either direction.