Technical analysis of EUR/JPY for January 10, 2014
January 10, 2014 9:45 am
В General overview for 10/01/2014 09:35 CET
The corrective cycle in wave (ii) green is still in progress; however, the first clues of a possible end of this cycle are visible and a an intraday downtrend might show up soon.
Currently, in intraday time frame there are two possible counts for the corrective cycle and the difference is in the placement of the wave Y brown top.
The main count indicates the completion of the wave ii black after wave (ii) green has been done and now the powerfull wave iii black to the downside is expected. This count is valid as long as the level of 143.04 is not broken. The first confirmation comes with the red trendline breakout.
On the other hand, the alternate count suggests one more push higher in the last wave Y brown of wave (ii) green and then downtrend resumption. This scenario is valid only if the 143.05 level is broken to the upside.
Support/Resistance:
144.20 – WR2
144.08 – 61%Fibo
143.16 – 143.30 – SUPPLY ZONE
143.05 – Weekly Pivot
142.76 – Intraday Support
142.00 – Wave i low
141.49 – Wave (i) low.
Trading recommendations:
As long as the level of 143.05 is not broken, intraday short positions should be opened with the entry as close to the level of 143 as possible, SL at the level of 143.05 and TP at the level of 141.51 and 141.05.
The material has been provided by InstaForex Company – www.instaforex.com
В General overview for 10/01/2014 09:35 CET
The corrective cycle in wave (ii) green is still in progress; however, the first clues of a possible end of this cycle are visible and a an intraday downtrend might show up soon.
Currently, in intraday time frame there are two possible counts for the corrective cycle and the difference is in the placement of the wave Y brown top.
The main count indicates the completion of the wave ii black after wave (ii) green has been done and now the powerfull wave iii black to the downside is expected. This count is valid as long as the level of 143.04 is not broken. The first confirmation comes with the red trendline breakout.
On the other hand, the alternate count suggests one more push higher in the last wave Y brown of wave (ii) green and then downtrend resumption. This scenario is valid only if the 143.05 level is broken to the upside.
Support/Resistance:
144.20 – WR2
144.08 – 61%Fibo
143.16 – 143.30 – SUPPLY ZONE
143.05 – Weekly Pivot
142.76 – Intraday Support
142.00 – Wave i low
141.49 – Wave (i) low.
Trading recommendations:
As long as the level of 143.05 is not broken, intraday short positions should be opened with the entry as close to the level of 143 as possible, SL at the level of 143.05 and TP at the level of 141.51 and 141.05.
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