FX.co ★ Technical analysis of EUR/JPY for January 16, 2015

General overview for 16/01/2015 09:10 CET

The market keeps falling further and currently is very close to invalidate the main count. Any violation of the level of 134.12 is a direct main count invalidation. It means, that the big impulsive cycle to the upside has been completed and now the market is in corrective cycle that looks like a zig-zag (or double zig-zag). Moreover, the corrective cycle has not been finished yet and more downside prices are expected then. Only a sustained breakout above the level of 137.01 would confirm a possible rebound of this market.

Support/Resistance:

134.12 - Key Level|Main Impulsive Count Invalidation Level|

134.32 - WS3

134.73 - Intraday Support

136.99 - Intraday Resistance

Trading Recommendations:

Daytraders should consider opening buy positions only if the level of 137.01 is clearly violated with SL below the level of 134.12 and open TP level for now.