Elliott Wave Analysis of EUR/JPY for October 11, 2013 Trend News

Today's Support and Resistance levels:

R3: 134.60

R2: 134.03

R1: 133.69 Ideal red wave iii of i target (not shown in the chart)

Current Spot: 133.33

S1: 133.11

S2: 132.75

S3: 132.46

Technical summary:

As we said yesterday, there was no time left and some kind of resolution was expected. We certainly got that. The resolution was towards the upside as per our preferred scenario. With wave ii in place we should now expect a rally towards at least 136.97, where wave iii will be equal in length to wave i, but it is more likely, that wave iii will become extended and move even higher towards 140.46, where wave iii will be 1.618 times wave i.

in the short term we are close to strong short-term resistance at 133.69, which is expected to hold for a correction towards the 132.46 - 132.75 support-zone, from where the next rally higher towards 134.06 as wave i of iii is possible.

Trading recommendation:

Stay long in EUR from 132.20 and move your stop higher to 133.10, take profit at 133.60. Be ready to go long in EUR again within the 132.46-132.75 support-zone.

The material has been provided by InstaForex Company - www.instaforex.com



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#USDX Analysis for October 10, 2013 Trend News

The Dollar index is testng intermediate-term trend resistance at 80.60-70. The upward move from the lows is impulsive and it unfolds as if there is high probability that the longer-term trend is changing and that we are in a big reversal level.

Our target of reaching 80.60 has been achieved and as shown in the chart above we have reached a strong resistance level. The upward move is still in three waves from 79.62. We need to see a small wave 4 towards 80.40 and then a new upward move towards new highs to complete 5 waves upwards. If prices go below the 80.18 high, there will be an overlap in the price pattern. If that happens then bulls should be very careful with a potential pull back towards the blue upward sloping trendline that supports this trend.

The daily chart confirms the increased probabilities that a trend reversal could be near, as the recent high at 80.70 is being challenged. Breaking above that level and completing 5 waves up from the low at 79.62 will be bullish for the index and will have 81.50 as target after prices make a downward corrective move. Concluding, we remain bullish with targets above 80.70 in the short term. A pullback towards 80.40-50 is very possible to complete wave 4 of the upward move that started at 79.62. We remain bullish.

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