29.01.201410:19 Forex Analysis & Reviews: Technical analysis of EUR/JPY for January 29, 2014

General overview for 29/01/2014 07:30 CET

The price has hit a very important technical resistance level indicated yesterday and now a rejection or breakout is possible. Current count does suggest, that the upside wave progression is in only three waves so far and there is one more to the upside missing. Therefore, in case of upside breakout, the next level of resistance is a supply area between the levels of 141.62 - 141.76. Please notice the golden descending trend line is just above this area. It might provide further resistance as well. On the the hand, in case of a downside break, the first level to look at is intraday support at the level of 140.86 and red trend line support as well. A breakout to the downside at the level would indicate that weekly pivot might be tested again.

Support/Resistance:

141.76 - 141.62 - Supply Zone

141.24 - WR1

141.02 - Key Level

140.80 - Intraday Support

140.16 - Weekly Pivot

Trading recommendations:

As long as the level of 141.24 provides the resistance, short positions should be opened with SL above the level of 141.26 and TP at the level of 140.86 and 140.16.