FX.co ★ Elliott Wave analysis of EUR/JPY for August 9, 2013

Today's Support and Resistance levels:

R3: 130.16

R2: 129.72

R1: 129.20

Current Sport: 129.05

S1: 128.83

S2: 128.21

S3: 127.62

Technical summary:

After a push towards 129.71, we should be ready for next impulsive decline towards 126.06 and our ideal target for wave C of this flat correction is near 124.96. In the short-term outlook, we expect minor resistance at 129.20 to protect the upside trend from a break below 128.83 and more importantly a break below 128.21, which confirms that the next impulsive decline towards 126.06 is developing. A break above 129.20 will confuse the picture, but only a break above 129.46 will force a short term re-count.

Trading recommendation:

Stay short on EUR from 129.55 and move stop lower to 129.75. If you have not been short on EUR yet, then sell upon a break below 128.83 with the same stop at 129.75.