FX.co ★ Elliott wave analysis of EUR/JPY for August 28, 2014

Today's support and resistance levels:

R3:137.42

R2: 137.29

R1: 137.15

Current spot: 137.07

S1: 136.92

S2: 136.81

S3: 136.61

Technical summary:

We saw the expected test of important short-term support at 136.81, but it was not able to break below this support firmly. It has cause some consolidation just above this support. However, we are still looking for a new test and likely firm break below this support next time for a continuation lower to 135.73 and the equality target at 134.34. At this point only a break above 137.29 will delay the expected test of the short-term important support at 136.81.

Trading recommendation:

We are short in EUR from 137.75 with stop placed at 137.45. If you are not short in EUR yet, then sell near 137.29 or upon a break below 136.81 with the same stop at 137.45.