FX.co ★ Elliott wave analysis of EUR/JPY for August 20, 2014

Today's support and resistance levels:

R3: 137.62

R2: 137.42

R1: 137.36

Current spot: 137.23

S1: 137.01

S2: 136.76

S3: 136.55

Technical summary:

Minor support at 136.76 has protected the downside for a more prolonged blue wave ii. But our overall view still is, that we soon should see a powerful decline in blue wave iii lower to 135.73. After a minor consolidation in blue wave iv, we should see the final decline to the ideal blue wave v target at 134.34, where wave A also will be equal in length to wave A. Once the long-term target at 134.34 is reached, we should expect a new impulsive rally.

Trading recommendation:

We are short in EUR from 137.30 with stop place at 137.75. If you are not short in EUR yet, then sell near 137.30 or upon a break below 136.76.