FX.co ★ Elliott wave analysis of EUR/JPY for September 17 - 2014

Today's support and resistance levels:

R3: 139.46

R2: 139.29

R1: 139.17

Current spot: 139.07

S1: 138.94

S2: 138.76

S3: 138.46

Technical summary:

We think that red wave ii still is unfolding. We would like to see resistance at 139.17 protecting the upside for a final decline to 138.46 and maybe even slightly below, but this is not a correction to be trended (correction of this degree never is). So, we have nothing to do than to wait for a level where to buy EUR for the next impulsive rally higher to 143.79. In the short term, a break below minor support at 138.94 will be the first indication, that the final leg in this correction is developing for the decline to 138.46 before higher again.

Trade recommendation:

We are long in EUR from 135.95 with stop placed at 137.50. If you are not long in EUR yet, then buy near 138.46 with the same stop at 137.50.