FX.co ★ Technical analysis of EUR/JPY for January 20, 2014

General overview for 20/01/2014 15:15 CET

Last downside wave progression has broken the low of wave 1 (current A green) and this is why the count has been changed to more complex wave structure.

Currently, the upside wave progression has not been changed and there is some evidence that higher prices are possible.

The upside rally is possible due to ABC green Irregular Flat structure developing and the high of wave A green should be taken out.

In case of more complex correction, please notice, that wave 4 that the market is currently in, can develop into am ABCDE Triangle formation.

Support/Resistance:

139.92 - WS1

140.31 - Swing Low

140.88 - Intraday Support

141.36 - Intraday Resistance

141.42 - Weekly Pivot

142.32 - WR1

142.89 - Wave B high

Trading recommendations:

As long as intraday support at the level of 140.88 persists, long entry is preffered with SL below the level of 140.79 and TP at the level of 141.42. Extension is possible.