FX.co ★ Technical analysis of EUR/JPY for January 7, 2014

General overview for 07/01/2014 10:50 CET

The alternate count for the five waves impulsive decline has been the correct one and now it is the main count. In this labeling the low of 141.49 is the low of the five waves impulsive decline and now the corrective cycle is developing. The most possible shape of the correction in wave (ii) green is a simple abc Regular of Irregular Flat correction, that should be finished below the Weekly Pivot level at 143.05. Any breakout higher would mean the corrective cycle might be more complex and time consuming.

Support/Resistance:

143.05 - Weekly Pivot

142.82 - Technical Resistance

142.53 - 142.68 - SUPPLY ZONE

142.53 - Intraday Resistance

141.71 - Wave a low

141.49 - Intraday Support

141.00 - WS1

Trading Recommendations:

For intraday scalpers short positions should be in play with entry zone at the level of 141.10, SL should be placed at the level of 142.53 and TP is at the level of 141.71 and 141.49.