FX.co ★ Elliott Wave analysis of EUR/JPY for February 12, 2013

Today's Support and Resistance levels:

S1: 126.07 R1: 126.78

S2: 125.50 R2: 127.47

S3: 124.52 R3: 127.70

Technical overview:

There was no time for one last decline in wave a, which the break above minor resistance 124.50 confirmed. Currently wave b is unfolding and we can observe one last move higher towards 126.78 as long as support at 125.50 has not been penetrated. A break below support at 125.50 will be the first indication that wave b is over and wave c down has taken over. The final confirmation that wave c indeed is in motion will be a break below 124.52. The first target for wave c once it takes over will be at 122.37. The ideal target for this ongoing wave 4 will be at 117.24.

Trading recommendation:

Our stop at 124.55 was taken out yesterday and we booked a nice little profit. We will sell EUR again here at 126.15 with a stop at 127.75.