General overview for 25/01/2016:
EUR/JPY has bounced from the support level at 126.12, but it wan't strong enough to break range and enter the bullish zone. The current labeling indicates the possible corrective cycle progression inside the -ii- blue wave and if the intraday support at the level of 127.42 is not violated, then bullish trend should resume. In case the support breaks out, the traders should be ready for more complex corrective cycle and a possible test of the level of 126.12.
Support/Resistance:
126.08 - Higher Time Frame Cycles Invalidation Level
126.95 - WS1
127.41 - Intraday Support
127.75 - Weekly Pivot
129.08 - Intraday Resistance
129.34 - WR1
130.13 - WR2
130.75 - 130.85 - Technical Resistance| Gap |
Trading recommendations:
Day traders should consider opening buy order from the level of 127.42 in order to catch the anticipated wave -iii- to the upside. The SL for this trade should be placed below the level of 126.08 and TP would open for now. Moreover, this position might be an opportunity for a longer and more profitable swing trade.
