FX.co ★ Elliott wave analysis of EUR/JPY for July 30, 2014

Today's support and resistance levels:

R3: 137.25

R2: 137.11

R1: 137.03

Current spot: 136.93

S1: 136.86

S2: 136.76

S3: 136.62

Technical summary:

We saw a spike to 137.11 yesterday, just above our expected resistance at 137.01. This spike lifts the downside target to 136.10, but it changes no more than that. We are currently looking for resistance at 137.03 as well as for a break below support at 136.82. More importantly, a break below 136.76 calls for the expected decline to 136.10. In the longer-term, we are still looking for a move closer to 134.34, where we will find the equal target between wave (A) and (C).

Trading recommendation:

We are short in EUR from 137.20 and will move our stop close to 137.30. If you are not short in EUR yet, then sell near 137.03 with the same stop at 137.30.