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

Today's support and resistance levels:

R3: 137.27

R2: 137.00

R1: 136.78

Current spot: 136.63

S1: 136.47

S2: 136.23

S3: 136.00

Technical summary:

Wave a of Y ended a little early and we are correctly in wave b of Y, which could move higher to 137.67 before wave c lower takes over for a decline towards 130.59 - 131.52. The wave count in wave a has not been very clear, which has made it very hard to track probably, but with the break above minor resistance at 136.23 there can be no more doubt that wave b is unfolding before wave c lower.

Trading recommendation:

Our stop at break-even was hit and we will look for a EUR-selling opportunity near 137.67.