FX.co ★ Elliott wave analysis of EUR/JPY for April 1, 2014

Today's Support and Resistance levels:

R3: 142.90

R2: 142.60

R1: 142.35

Current spot: 142.28

S1: 142.00

S2: 141.79

S3: 141.27

Technical summary:

The last part of the wave ii correction reached a high at 142.60 slightly above our second target at 142.50. We now expected resistance at 142.35 to protect the upside for a break below support at 142.00 and more importantly a break below support at 141.27 that confirms a new impulsive decline is developing towards 139.96 and lower towards 136.45 in the longer term. Only an unexpected break above 142.60 will invalidate our bearish count and delay the downside pressure.

Trading recommendation:

Stay short in EUR from 142.35 with a stop at 143.80, move you stop lower to 142.65 upon a break below 142.00. If you are not short in EUR yet, then sell after a break below 142.00 with a stop at 142.65.