FX.co ★ Elliott wave analysis of EUR/JPY for July 28, 2014

Today's support and resistance levels:

R3: 137.06

R2: 137.00

R1: 13694

Current spot: 136.84

S1: 136.77

S2: 136.63

S1: 136.37

Technical summary:

As expected, red wave iv ended just below resistance at 137.34 (the high came in at 137.25). Now, we are in red wave v lower to 135.49, where we should see the bottom of wave iii. In the short term, we are looking for minor resistance at 137.00 to protect the upside for the next decline towards 136.00, which should be followed my a minor correction and then the final decline in red wave v to 135.49.

Trading recommendation:

We sold EUR at 137.20 and will place stop at 137.50. If you are not short in EUR yet, then sell EUR near 137.00 with the same stop at 137.50.