FX.co ★ Elliott Wave analysis of EUR/JPY for December 6, 2013

Today's Support and Resistance levels:

R3: 140.69

R2: 140.02

R1: 139.61

Current Spot: 139.22

S1: 139.12

S2: 138.46

S3: 138.16

Technical summary:

We did not get a resolution yesterday, as this cross traded in a narrow band between 138.46 and 139.56 all day. We are still looking for confirmation, that a major top is in place at 140.02, which a break below 138.46 will bring and call for a impulsive decline towards at least 137.82 for the short term and much lower towards at least 124.92 for the longer term. Or whether one more new high just above 140.02 is need, which a break above 139.61 will confirm.

Trading recommendation:

Stay short EUR from 139.50 with a close stop at 139.65. If you are not short EUR yet, then sell upon a brea below 138.46 with the same stop at 139.65.