FX.co ★ Technical analysis of EUR/JPY for January 06, 2015

Technical outlook and chart setups:

The EUR/JPY pair has dropped to 141.40/50 levels as seen here on the 4H chart view. The price action still looks encouraging for bulls since the pair is stalling at a strong fibonacci convergence around 142.00 levels. A bullish bounce here would certainly be encouraging to initiate long positions again, with risk at  140.00 levels. Please note that the pair has also completed the 3 wave correction at 141.97 (red color). Aggressive traders could initiate 50% long positions now around 141.60 levels. Looking into the entire structure, the 5 wave rally has been nicely followed up by a 3 wave correction till now. The next could be a 5 wave rally again.

Trading recommendations:

Initiate 50% long positions, stop at 140.00, target is open.

Good luck!