FX.co ★ EUR/JPY Elliott Wave analysis for March 5, 2013

Today's support and resistance levels:

S1: 121.11 R1: 121.87

S2: 120.74 R2: 122.20

S3: 120.35 R3: 122.75

Technical overview:

We are still looking for one last rally higher towards 122.74 as long as support at 120.96 and, more importantly, as long as support at 120.36 protects the downside. From 122.74 or upon a break below 120.36 we should expect renewed downside pressure for the last zigzag combination towards our ideal target at 117.28. At 117.28 wave 4 will have corrected 38.2% of wave 3 and once this target is reached the entire correction from 127.70 is likely to be over and we should expect the final wave 5 rally to above 127.70.

Trading recommendation:

We are looking to sell EUR at 122.65 or upon a break below 120.36 (one order done cancels the other). Our stop will be placed at 123.95 and our take profit at 117.50.