FX.co ★ EUR/JPY H1 analysis for October 4, 2013

General overview for 04/10/2013 09:30 CET

Five wave up sequence has been done and it looks like first impulsive wave is in place and now market is in corrective cycle.

If my analysis is right, it is going to be a quite deep ZigZag correction in wave (ii) that should hit the level of 131.63 for equall legs a=b. There is quite strong DEMAND area of the grey rectangle that sould provide the support.

Still the major clue for further wave progression would come if either of the important levels is broken: it is Demand Zone on one hand, and on the other hand it is a golden channel breakout.

Support/Resistance:

131.41 - 131.63 - DEMAND ZONE

132.12 - Techncial Support

132.47 - Weekly Pivot

132.97 - Intraday Resistance

133.17 - WR1

Trading recommendations:

The high probabillity setup comes with long entry at 131.63 with SL below 131.40. TP is open for now because it might be a nice swing trade.