Technical analysis of EUR/JPY for January 31, 2014 Trend News

General overview for 31/01/2014 10:00 CET

The target for wave (v) blue has been missed by mere 10 pips and it looks like the market had finished the impulsive wave progression to the downside and now it is trying to bounce from the lows. The next cycle should be a corrective wave B green, that might retrace first to the grey rectangle area between the levels of 139.47 - 139.58 or hit the previous wave four area at the level of 139.93. Moreover, the weekly pivot should provide good resistance and it should stop any upside rally. On the other hand, any break out lower below the level of 138.66 is bearish and wave (v) will be extended down to the level of 137.96.

Support/Resistance

137.96 - WS1

138.66 - Intraday Support

139.21 - Intraday Resistance

139.47 - 139.58 - Demand Breakthrough Zone

139.93 - Previous wave four level

140.17 - Weekly Pivot

Trading recommendations:

Break out below the level of 138.66 is bearish and buy stop orders should be opened from this level with SL above the level of 139.21 and TP at the level of 137.96.

The material has been provided by InstaForex Company - www.instaforex.com



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