FX.co ★ Elliott wave analysis of EUR/JPY for April 23, 2014

Today's Support and Resistance levels:

R3: 142.52

R2: 142.17

R1: 141.82

Current spot: 141.68

S1: 141.45

S2: 141.23

S3: 140.98

Technical summary:

The failure to break clearly below support at 141.23 has kept the correction from 140.08 alive. As long as support at 141.23 protects the downside, we could see a move closer to strong resistance near 142.17, but from here or upon a break below 141.23, a new impulsive decline towards 136.33 should be seen.

In the longer term we are still looking for a much deeper correction of the rally from 94.10 to 145.69, with the ideal target being near 126.00.

Trading recommendation:

Stay short in EUR from 141.63 with your stop placed at 143.50.