17.10.201409:40 Forex Analysis & Reviews: Technical analysis of EUR/JPY for October 17, 2014

General Overview for 17/10/2014 08:30 CET

The wave A black has been finally completed and the projected target level has been hit and even broken to the downside before the market has bounced upwards. Nevertheless, the key level has still not been violated and the market is still trading below the weekly pivot at the level of 136.30. Only a breakout higher above this area would be considered as a bullish clue, but please remember that the market is still inside of the larger time frame corrective structure (either triangle or zig-zag) and price action might get very choppy and full of whipsaws. Only a breakout below the level of 134.11 invalidates this slightly bullish view.

Support/Resistance:

133.98 - WS2

134.11 - Swing Low

134.66 - WS1

135.08 - Intraday Support

136.30 - Weekly Pivot

136.40 - Intraday Resistance

136.55 - Technical Resistance|Key Level|

Trading recommendations:

As long as the market stays below the level of 136.55 only sales should be considered, but any breakout above this level is bullish.