FX.co ★ Technical analysis of EUR/JPY for January 8, 2014

General overview for 08/01/2014  08:50 CET

Price went up in corrective cycle as anticipated yesterday and has hit the 38% Fibo level at 143.09 making this level the top for a possible abc green correction in wave (ii). If this is really the completed simple correction cycle top, then the level of 142.84 should be broken first and the test of the golden trend line should be in view. If the golden trend line is broken, then the technical price pattern of Bearish Flag is in play and next support would be at the level of 141.50.

However, if the intraday support level will hold then it is reasonable to assume deeper upside correction up to the levels of 50% Fibo at 143.58 and even 61% Fibo at 144.08.

 Support/Resistance:

144.20 - WR1

144.09 - 61% Fibo

143.58 - 50% Fibo

143.16 - 143.31 - SUPPLY ZONE | Key Level |

143.05 - Weekly Pivot

142.84 - Intraday Support

141.50 - Technical Support | Swing Low

Trading recommendations:

For intraday scalpers: if the level of 142.84 is broken, then short positions should be in play with entry as close as possible to the level of 142.84, SL at the level of 143.12 and Tp at the levels of 142.52 and 141.50.