FX.co ★ EUR/JPY H1 Analysis for October 8, 2013

General overview for 08/10/2013 08:00 CET

Despite the fact that the low of 131.41 has been taken out, there is no further bearish continuation at this point of time.

The very compex and time consuming corrective wave progression has now WXYXXZ shape of Descending Triple Three Correction Wave 4 green of a Leading Diagonal, but it still might be a part of a triangle pattern mainly due to lack of impulsive development, so the overall picture is still complex.

There is still unfilled GAP area at 130.83 - 130 .96 and this might be a market target before bounce/reversal happens.

The RSI indicator shows quite strong bullish divergence and possible impulsive wave development is expected.

Support/Resistance:

130.83 - 130.96 - GAP

130.93 - WS1

131.12 - Intraday Low

132.16 - Intraqday Resistance

132.20 - Weekly Pivot

132.69 - Technical Resistance.

Trading recommendations:

Going long from DEMAND zone (recommended yesterday) could bring some profits today, but currently it is quite too late to add to the current positions, so it is preffered to wait and see what the price will do at the 132.16 level. It might get rejected, so then intraday short scalp positions should be in play.