FX.co ★ EUR/JPY H1 analysis for October 24, 2013

General overview for 24/10/2013 08:30 CET

Althrough the minimum level needed for Running Flat has been reached there is still a possibility that the recent wave down was just a leg (a) of a ZigZag wave Y. This count would make the whole corrective wave (ii) green quite complex and time consuming, but as long as the level of 134.81 is not taken out (61%Fibo of the last swing and golden TL resistance) and the price is not back to the golden upsloping channel, there is still possibility of a impulsive leg to the downside that will meet the target area around the 132.96 level.

Breakout above 134.81 will expose the recent high to be tested and if it is broken alternate count is in play.

Support/Resistance:

135.49 - Swing High

135.25 - WR2

134.81 - 23%Fibo

134.75 - WR1

133.81 - Weekly Pivot

133.60 Intraday Support

133.31 - Intraday Support

133.24 - WS1

132.96 - 132.90 - TARGET AREA FOR WAVE (c)

Trading recommendations:

In anticipation of one more leg to the downside intraday short positions should be in play with entry at current levels (134.65) and SL above 134.82 with potential target TP at 132.96.