FX.co ★ Technical analysis of EUR/JPY for October 9, 2014

General overview for 09/10/2014 10:45 CET

The corrective cycle in wave B (or alt:(2)) has completed sooner than expected and not the first indication of an impulsive wave progression to the upside is present. The key level for this scenario is the supply zone at the level of 137.93 and only a clear valid breakout higher would mean that market behavior has changed and now higher prices can be seen. Otherwise, this progression can be still seen as part of a bigger corrective cycle. Please note that this pair has broken out of the golden channel, which is a first bullish indication supporting my view.

Support/Resistance:

136.55 - Wave B Low

137.14 - Intraday Support

137.68 - Weekly Pivot

137.95 - Supply Zone|Intraday Resistance|Technical Resistance |Key Level|

138.45 - WR1

138.97 - 139.15 - Demand Breakthrough Zone

Trading recommendation

As long as the price stays above the level of 137.14, only buy orders should be opened with the potential TP at the level of 137.93 and above.