FX.co ★ Elliott wave analysis of EUR/JPY for April 17, 2014

Today's Support and Resistance levels:

R3: 142.17

R2: 141.76

R1: 141.47

Current spot: 141.18

S1: 140.90

S2: 140.64

S3: 140.22

Technical summary:

The break above the hort-term important resistance at 141.55 made us go back to our original short-term count. This count shows that red wave i ended at 140.08 and since then red wave ii has been developing. It is possible that red wave ii ended with a test of 141.76 yesterday, as that marked the 50% corrective target of red wave i, but the decline from 141.76 does not really look impulsive and therefore we think that one more new high closer to the 61.8% corrective target at 142.17 will be seen before red wave iii takes over for a decline towards 136.33.

Trading recommendation:

Our stop at 141.60 was hit for a small loss. We will sell EUR again at 142.05 with a stop at 143.50 expecting to see lower the stop soon.