FX.co ★ Elliott wave analysis of EUR/JPY for July 22, 2014

Today's support and resistance levels:

R3: 137.50

R2: 137.42

R1: 137.34

Current spot: 137.29

S1: 137.20

S2: 137.11

S3: 137.00

Technical summary:

We have seen a correction to 137.34 (well below the 137.50 maximum). Now, we are looking for a break below minor support at 137.20 to confirm that the correction is over and the next impulsive decline lower towards 134.34 is well underway. At 134.34, wave C will be equal in length to wave A. We should expect that support 134.34 will be able to protect the downside for a larger correction, but more about that, when we get there.

Trading recommendations:

We are short in EUR from 138.95 with stop placed at 137.95. If you are not short in EUR yet, then sell EUR near 137.34 with the same stop at 137.95.