FX.co ★ Technical analysis of EUR/JPY for January 28, 2014

General overview for 28/01/2014 08:30 CET

The lack of an immediate bullish bounce to the upside above the area of 141.01 - 141.14 prevents from ruling out a more downside wave development possibility. Currently the market is at the very important key level zone and breakout higher is needed to confirm the low for wave 4 purple and further upside wave progression. Any breakout to the downside, below the weekly pivot at the level of 140.16 means, that the bearish corrective wave progression might continue and recent low at the level of 139.11 might be tested again.

Support/Resistance:

142.35 - Wave X High

141.24 - WR1

141.01 - 141.14 - Demand Breakthrough Zone

140.55 - 140.69 - Technical Resistance | Key Level |

140.16 - Weekly Pivot

139.74 - Intraday Support

139.11 - Swing Low

Trading recommendations:

The area between the levels of 140.55 - 140.69 is the main resistance and it provides a good opportunity to open a short position with SL above the level of 140.71 and TP at the level of 140.16 and 139.74.