General overview for 26/01/2016:
Labeling for EUR/JPY has been updated to incorporate wave b purple triangle pattern, just as anticipated yesterday. Currently, the last wave to the downside is in progress, and if the intraday support at the level of 127.42 is not violated, then a bullish trend should resume. In case the support breaks out, traders should be ready for a more complex corrective cycle and a possible test at 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 placing 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 will open now. Moreover, this position might be an opportunity for longer and more profitable swing trading.
