FX.co ★ Elliott Wave analysis of EUR/JPY for November 12, 2013

Today's Support and Resistance levels:

R3: 134.24

R2: 133.73

R1: 133.44

Current spot: 133.25

S1: 132.91

S2: 132.21

S3: 131.50

Technical summary:

Well, the rally of the 131.20 low has become larger than expected, but then second waves are allowed to correct the entire first wave, but the second wave can never break beyond the starting point of the first wave, which is at 133.73. It is most likely that we have already seen the end of red wave ii at 133.44, but we need a break below 133.21 and, more importantly, a break below support at 132.91 to confirm that red wave ii is indeed over and red wave iii lower towards at least 129.35 has begun.

Only a break above 133.73 will invalidate our bearish count and call for a more complex wave ii correction.

Trading recommendation:

Stay short form 131.50 or sell a break below 132.90 with a stop at 133.75.