Technical analysis of EUR/JPY for January 22, 2015

General overview for 22/01/2015 15:40 CET

After the release of the ECB meeting results, the market has made another leg to the downside, but the intraday support at the level of 134.71 has not been broken yet. This structure to the downside might be labeled as a three-wave correction and, as long as the level of 134.71 is not clearly violated, there is still a chance for a rebound. Please, notice that any violation of the level of 134.12 invalidated the red impulsive sccenario and puts the alternate one into play.

Support/Resistance:

134.12 - Invalidation Level

134.71 - Intraday Support

136.80 - Weekly Pivot

Trading recommendations:

Traders should stay aside for now and wait what reaction will be when market hits the key support level.