FX.co ★ Elliott wave analysis of EUR/JPY for November 5, 2013

Today's Support and Resistance levels:

R3: 134.84

R2: 134.15

R1: 133.42

Current Spot: 132.94

S1: 132.60

S2: 132.44

S3: 132.20

Technical summary:

The pair has been trading in a narrow range between 132.60 and 133.42 since yesterday, and we need a break above 133.42 to confirm that wave b is over and wave c is ready to take us higher towards 137.69 and maximum 138.39. However, as long as important resistance at 133.42 protects the upside, we still could see the wave b move lower towards 132.20 before wave b is finally over and wave c is ready to take over.

Only a direct break below 131.12 will indicate that we has seen the important top of wave v already and that a correction towards 124.89 is developing.

Trading recommendation:

Stay long in EUR from 133.20 with your stop at 131.10. If you are not long in EUR yet, buy after a break above 133.42 with the same stop at 131.10.