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Technical analysis of EUR/JPY for November 6, 2014

General overview for 06/11/2014 12:10 CET:


The corrective cycles anticipated yesterday hasn't been that deep as anticipated so small change in labeling has been made. The top for wave 3 blue has been established at the level of 144.22 and now corrective cycle is due. This point of view is being supported by multi-timeframe bearish divergence that is clearly visible on hourly RSI chart. The other thing that supports the corrective case is the daily time frame supply zone that has just been hit. The fist indication of a corrective cycle development is intraday support breakout at the level of 142.54.


Support/Resistance:


144.90 - WR2


144.22 - Swing High


143.67 - WR1


142.54 - Intraday Support


Trading recommendations:


The advised TP level has been hit (and broken). So not all day traders should refrain from trading before a main fundamental event (ECB news release) and all swing traders should move the SL just below the level of 142.98.


eurjpy_h1.jpgThe material has been provided by InstaForex Company - www.instaforex.com