FX.co ★ Technical analysis of EUR/JPY for October 10, 2014

General overview for 10/10/2014 07:20 CET

After breaking above the golden channel, the market has been capped right on the supply zone, marked on chart as the grey rectangle, and reversed. Currently, if the market breaks below the last swing low at the level of 136.55, then the whole impulsive count is invalidated and lower levels should be expected including another test of the level of 135.81. Moreover, it will mean that the price is back to the larger time frame range zone and latest price rally, marked on chart as wave (1) purple, has been a false breakout rally.

Support/Resistance:

136.55 - Wave B Low

137.14 - Intraday Resistance

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 recommendations:

As the outlook is not very clear at the moment, please refrain from trading until clear pattern emerges.