Technical analysis of EUR/JPY for October 6, 2014 Market Analysis Review

General overview for 06/10/2014 11:30 CET

This market still looks like it is making another false breakout to the upside in the mid-term basis but the lower time frame wave development hasn't really confirmed this view. There are too many possibilities to anticipate with the decent degree of probability what the next market move will be. The longer-term trend is still bullish and the current market behavior is very much similar to some kind of a very complex and time-consuming corrective cycle, possibly in wave 2 of a larger time frame degree.

Nevertheless, to intraday analysis indicates a possible bottom in this market, labeled as wave B, but as long as the intraday resistance at the level of 137.93 is not broken, the bullish impulsive wave progression remains in question. Support/Resistance:

136.86 - Intraday Support | Wave B Low|

137.68 - Weekly Pivot

137.93 - Intraday Resistance

138.45 - WR1

138.97 - 139.15 - Demand Breakthrough Zone Trading recommendations:

Daytraders should pay attention to the mentioned key level as any breakout higher would provide a great opportunity for a buy side trade with SL below the level of 136.85.

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



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