FX.co ★ Technical analysis of EUR/JPY for January 16, 2014

General overview for 16/01/2014 10:40 CET

The anticipated yesterday move upwards in this pair has been initialized after corrective cycle of abc Irregular Flat subwave had been done.

The current target for this move is the SUPPLY ZONE, but first the intraday resistance at the level of 142.90 must be taken out.

On the other hand, any breakout below the intraday support would expose the Weekly Pivot and if this is broken, then the low of the wave (ii) at the level of 141.80 might be tested.

Support/Resistance:

143.31 - 143.15 - SUPPLY ZONE

143.06 - WR1

142.90 - Intraday Resistance

142.42 - Intraday Support

142.28 - Weekly Pivot

141.80 - Low of the wave (ii)

Trading recommendations:

Buying on dips is advised as the corrective wave 4 purple looks done and there is more to the upside possible. Play the breakout to the upside: the entry is at the level of 142.90, tight SL in case of takeout, and TP is at the level of 143.15