FX.co ★ Elliott Wave Analysis of EUR/JPY for December 6, 2012

Today's Support and Resistance Levels:

S1: 107.46 R1: 107.96

S2: 107.18 R2: 108.33

S3: 106.85 R3: 108.89

Technical Overview:

Yesterday we saw a deeper than expected correction which started from the 107.96 high. This deep correction could change our short-term count slightly, if prices manage to break below 106.93. A break below 106.93 will move the top of minor wave i of iii to 107.96 but not where we have marked it at 107.67. A break below 106.93 could mean a slightly deeper correction towards 106.62 and maybe even 106.30, before the next rally is ready to take off towards the next minor targets at 107.96 and 108.89. However, in the long term we are still expecting much higher levels to be seen with the next major target at 110.85.

Trading Recommendation:

You should be long EUR from 106.20 with stop at 106,80. If you are not long EUR you should buy a break above 107.86 with the same stop.