FX.co ★ Technical analysis of EUR/JPY for October 31, 2014

General overview for 31/10/2014 08:20 CET

After the fundamental news release from Japan, this market spiked way much higher, breaking the supply zon and technical resistance. For now, it has stopped just shy of the longer term golden trendline that can be seen on this H4 time frame chart. If we take a look a little closer, we might see the upward progression in three waves so far. It has hit the next Fibo extension at the level of 138.89 (161%(a)=(c)). Currently, two scenarios are possible: either this wave up will continue to the golden trendline and then reverse, or the market is loosing steam already and some corrective cycle to the downside is needed.

Support/Resistance:

141.20 - Swing High

140.20 - Golden Trend Line Resistance

139.89 - 161%Fibo Level

138.01 - Untested Breakout Level

Trading recommendations:

Day traders and swing traders should refrain from trading until clear pattern will emerge.