FX.co ★ Technical analysis of EUR/JPY for Febuary 6, 2014

General overview for 06/02/2014 09:15 CET

The corrective cycle continues and the market is positioning itself before important news release on Friday. The trading range is between the levels of 137.85 (top) and 136.22 (bottom). It all depends what will the market do next and what count will be invalidated. Currently, we can see that there is no impulsive wave progression on the market from the low of supposed wave 4 purple. The market stays in a trading range zone and we are waiting for confirmation/invalidation of the count.

Support/Resistance:

138.53 - Weekly Pivot

137.85 - Trading Range Top Level

137.48 - Intraday Resistance

136.42 - Intraday Support

136.22 - Trading Range Bottom Level

135.86 - WS1

135.44 - Invalidation Line

Trading recommendations:

For swing traders: sustained breakout above the level of 137.85 is bullish and the main count is confirmed. Long positions should be opened with SL below the 136.22 level. TP is above the last swing high level. On the other hand, breakout of the level of 136.22 is bearish and short positions should be opened with SL above the level of 137.85 and first TP is at the level of 135.44.