FX.co ★ Technical analysis of EUR/JPY for October 23, 2014

General overview for 23/10/2014 12:00 CET

The complex corrective structure in wave -ii- blue looks to be completed and impulsive bullish breakout above the descending golden channel is the first confirmation that higher prices should be seen soon. The first target is at the level of 137.00 but even higher extension above this level is expected, up to the level of 137.93. On the other hand, any failure here on this key level would possibly lead to the test of the golden channel lower trend line before any impulsive wave progression will continue.

Support/Resistance:

137.86 - WR1

137.77 - 137.94 - Supply Zone

136.99 - Intraday Resistance

136.25 - Intraday Resistance|Key Level|

135.99 - Weekly Pivot

135.50 - Intraday Support

135.27 - WS1

134.11 - Swing Low

Trading recommendations:

Buying the dips advised yesterday was very profitable and now partial profit taking might take place at the current price levels. Swing traders should put SL below the level of 135.27 and wait for further impulsive wave progression to the upside.