FX.co ★ Technical analysis of EUR/JPY for January 9, 2014

В General overview for 09/01/2014 11:50 CET

Corrective cycle is getting more complex and time consuming and currently the labeling has been slightly changed to indicate this possibility.

The main SUPPLY ZONE between the levels of 143.16-143.30 still put a lid on any upside rallys in this pair and there is a possibility, that last wave of correction, wave Y brown, might be finished in this zone. In case of any extension to the upside, next important level would be 50% Fibo at the level of 1.43.58.

Please notice that this is corrective cycle and there is nothing wrong with the price to go as high as 61%fibo or even higher. As long as there is no new swing high made, the outlook is bearish.

Support/Resistance:

144.20 - WR1

144.08 - 61%Fibo

143.58 - 50%Fibo

143.30 - 143.16 - SUPPLY ZONE

143.05 - Weekly Pivot

142.76 - Intraday Support

Trading Recommendations:

As long as the SUPPLY ZONE holds the line the intraday scalpers should play the short side of the market with entry levels as close as possible to the SUPPLY ZONE, SL should be above the level of 143.17 and TP should be at the level of 142.72 and 142.53.