FX.co ★ Technical analysis of EUR/JPY for January 13, 2014

General overview for 13/01/2014 08:30 CET

The SUPPLY ZONE that has been described here the whole last week has been providing a good resistance and finally the market has broken to the downside. Currently, it is moving in rather tight golden channel and traders should wait for either further channel downside price continuation or an upside breakout attempt. In the latter case, the next resistance level would be between the levels of 142.00-142.15, just shy of Weekly Pivot level. On the other hand, there is a Technical Support zone В between the levels of 140.83-141.05 and this zone must be broken to support the more price deteriorating point of view.

Support/Resistance:

144.73 - WR3

143.93 - WR2

143.06 - WR1

142.25 - Weekly Pivot

141.56 - Intraday Resistance

141.42 - WS1

141.22 - Intraday Support

140.63 - WS2

Trading recommendations:

In case of a golden channel breakout to the upside, buy stop orders should be in play from the entry level of 141.56, SL below the level of 141.19 and TP at the level of 142.00.