Technical analysis of EUR/JPY for January 21, 2014

General overview for 21/01/2014 8:15 CET

After finishing the corrective cycle, the price has broken above Weekly Pivot level and now the impulsive wave progression continues.

The first intraday target would be the level of 142.15, where the previous wave (iv) area is.

If this level is broken, then last SUPPLY ZONE between the levels of 143.15 – 143.31 will be put to the test and might get broken.

There is a chance that before the intraday resistance level of 141.83 is broken, price might step back and first test the Weekly Pivot level from the upside before the trend resumes.

Support/Resistance:

143.15 – 143.31 – SUPPLY ZONE

142.90 – Wave B High

142.32 – WR1

142.15 – Previous wave (iv) level

141.83 – Intraday Resistance

141.51 – Intraday Support

141.41 – Weekly Pivot

141.37 – Technical Support

Trading recommendations:

Breakout above 141.83 is bullish and long positions should be in play with SL at the level of 141.49 and TP at the level of 142.15 and 142.90.

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