FX.co ★ Technical analysis of EUR/JPY for January 7, 2015

General overview for 07/01/2015 11:30 CET

The wave (c) blue has extended the drop a little bit further to hit the weekly support at the level of 140.54. Nevertheless, the outlook for the pair is still bullish and currently the bullish divergence is supporting the view that this corrective drop is near to finish and further upward rally is about to unfold. Please note that the key level to the upside is now at the level of 141.67. A breakout above this intraday resistance would be the first clue that the bullish impulsive structure is in progress. But to further confirm this scenario, the price must break out above the level of 143.17.

Support/Resistance:

140.54 - WS2

141.65 - Intraday Resistance

141.95 - WS1

143.18 - Intraday Resistance

144.10 - 144.42 - Gap Zone

144.58 - Weekly Pivot

145.57 - Technical Resistance

146.22 - WR1

Trading recommendations:

Buy orders opened yesterday with SL below the level of 140.54 and TP at the level of 144.42 should be still kept open as there is a high chance the corrective cycle might be completed now. Next good level to add to existing positions is at the level of 143.17.