06.01.201513:28 Forex Analysis & Reviews: Technical analysis of EUR/JPY for January 6, 2015

General overview for 01/06/2015 12:10 CET

The impulsive count has been invalidated as the price has violated the level of 143.18 and made another wave down. This means that on the larger time frame the market has hit the key support zone between the levels of 141.14 - 142.09. There are now three almost equal legs down in the corrective cycle that increase the probability of a bounce, but to do this, the market must break out above the intraday resistance at the level of 143.18 and then fill the gap. Otherwise the intraday bias is still bearish as the weekly support at the level of 140.54 might be tested before any meaningful bounce will happen.

Support/Resistance:

140.54 - WS2

141.95 - WS1

141.36 - Intraday Support

143.18 - Intraday Resistance

144.10 - 144.42 - Gap Zone 

144.58 - Weekly Pivot  

145.57 - Technical Resistance 

146.22 - WR1 

Trading recommendations: 

Daytraders and swingtraders should consider to open buy orders from current market levels with SL below the level of 140.54 and TP at the level of 144.42 with a possible extension to the level of 144.75.