Elliott wave analysis of EUR/JPY for October 5 - 2014 Market Analysis Review

Today's support and resistance levels:

R3: 137.87

R2: 137.64

R1: 137.44

Current spot: 137.18

S1: 137.04

S2: 136.86

S3: 136.60

Technical summary:

We still regard the rally of the 135.80 low as an impulsive rally and more upside should be seen in the longer term towards strong resistance at 143.79. If this impulsive scenario is to stay valid, we should soon see upside acceleration and the first clue will be a break above minor resistance at 137.87 for a rally back to 139.13 towards 141.22 on the way higher to 143.79. That said, we have to be aware of the risk of the rally to 141.22 only being an X-wave and if this is the case, then we will see support at 135.80 be broken soon for a continuation lower towards at least 133.52 and possibly even 125.98, but for this scenario to become the preferred count a break below 135.80 is needed.

Trading recommendation:

We are long EUR from 137.75 with stop at 136.85. If you are not long EUR yet, then put a break above 137.87 with a stop at 136.85

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



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