FX.co ★ Technical analysis of EUR/JPY for December 17, 2014

General overview for 17/12/12014 06:40 CET

The corrective cycle looks to be completed as the last wave Y brown has made a low at the level of 144.96, just below the important weekly support at the level of 145.70. The first stage of the impulsive rebound can be seen, but the confirmation is needed to support this view. So far, the market tried to rally upward, but it couldn't break out of the neutral zone and got back to the intraday range. To follow the impulsive wave progression, the price must now break out above the intraday resistance at the level of 147.01 and then rally above the dynamic resistance provided by the golden trend line. If this scenario does not happen, it means the further slide down is more than possible.

Support/Resistance:

144.46 - WS2

144.96 - Intraday Support

145.70 - Technical Support

145.86 - WS1

147.01 - Intraday Resistance

147.82 - Weekly Pivot

148.24 - Intraday Resistance

Trading recommendations:

The key intraday resistance is at the level of 147.01 and traders should consider opening buy stop orders from this level, with TP at the level of 148.22 and tight (15-20 pips) SL.