Technical analysis of EUR/JPY for January 5, 2016 Market Analysis Review

General overview for 05/01/2016 07:10 CET

The impulsive count was invalidated due to overlaps of wave 1 and wave 2. The alternative count is now in play. According to this count, the complex corrective cycle in wave B blue has not been completed yet. The wave (a) blue looks completed and the bullish divergence on the daily chart is the first clue to support this view (both on the RSI and AO indicators). The wave (b) blue should be in progress now with the projected target at the level of 131.04. After reaching this level, the market should reverse and complete the last wave to the downside - the wave (c) blue. Then, the whole corrective structure will be completed and the market should be ready to resume the uptrend in order to develop the wave C blue.

Support/Resistance:

127.98 - WS3

129.31 - WS2

129.80 - WS1

131.04 - Technical Resistance

131.14 - Weekly Pivot

131.62 - WR1

Trading recommendations:

Daytraders should consider buying on the dips in this market with SL below the level of 128.65 and TP open for now.

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

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