FX.co ★ Elliott wave analysis of EUR/JPY for September 30 - 2014

Today's support and resistance levels:

R3: 138.86

R2: 138.65

R1: 138.38

Current spot: 138.09

S1: 137.89

S2: 137.39

S1: 137.00

Technical summary:

The failure to rally firmly above minor resistance at 139.25 and the following decline below 138.39 is dissapointing and tells us that more downside correction towards 137.87 and maybe even lower to 137.39 is needed before this red wave ii correction finally is over. That said, we will have to remember, that this in a wave two correction and they can be frightingly deep and are allowed to correct 100% of the first wave. At this point only a break above 139.13 eases the downside pressure and calls for a new rally towards 139.70 and above. 

Trading recommendation:

We will stay neutral for now and place a EUR-buy order at 139.15.