FX.co ★ Elliott wave analysis of EUR/JPY for September 16 - 2014

Today's support and resistance levels:

R3: 139.17

R2: 138.99

R1: 138.88

Current spot: 138.71

S1: 138.62

S2: 138.53

S3: 138.24

Technical summary:

The expected minor correction in red wave ii is unfolding as expected and likely need a little more downside pressure towards 137.66 before red wave ii is over and red wave iii can take over for a strong rally towards 143.79. Short term a break below minor support at 138.53 will confirm, that red wave c or red wave ii lower is developing for the decline to 137.66, which ideally will protect the downside, but as this is a wave two correction, we must accept a deeper correction.

Trading recommendation:

We are long in EUR from 135.95 and will keep our stop at 137.50. If you are not long in EUR yet, then buy near 138.17 with the same stop at 137.50.