Technical analysis of EUR/JPY for January 6, 2014 Trend News

General overview for 06/01/2014 09:00 CET

The last fifth wave down indicated in last week's analysis finally materialized and currently there is a high probablity that corrective cycle will begin shortly.

To confirm this point of view, the level of 141.95 must provide the resistance for price. Then last sub-wave of the wave v might develop and break the last intraday support level at the 141.48 and make a new low into 141.04 - 140.83 techncial support zone.

On the other hand, breakout above the level of 141.95 is first clue of bullishness and the corrective cycle beginning. Next level of resistance would be SUPPLY zone between the levels of 142.52 - 142.68. Breakout above this zone is confirmation of the temporary bottom.

Support/Resistance:

146.24 - WR2

145.68 - Swing High

144.20 - WR1

143.05 - Weekly Pivot

142.52 - 142.68 - SUPPLY ZONE

141.95 - Intraday Resistance

141.48 - Intraday Support

140.88 - 141.04 - Technical Support Zone

141.06 - WS1

Trading recommendations:

For intraday scalpers: the most important level for today is 141.95, if this level is broken, long positions should be in play with SL below the level of 141.74 and TP at the level of 142.52.

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



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