FX.co ★ EUR/JPY Elliott Wave analysis for March 7, 2013

Today's support and resistance levels:

S1: 121.54 R1: 122.00

S2: 121.11 R2: 122.29

S3: 120.52 R3: 122.75

Technical overview:

We are still locked in a narrow range, but it seems like this x wave correction from 118.73 is coming to an end soon. As long as support at 121.54 and, more importantly, support at 121.11 protects the downside we are looking for one last minor rally higher towards 122.75 to end this x wave. However a direct break below 121.54 will be the first indication, that this x wave correction already has terminated, while a break below 121.11 will confirm it and call for a new decline to 118.73 on the way down to the ideal target at 117.28, where we expect this larger wave 4 correction to end.

Trading recommendation:

We are still looking for EUR shorting opportunity. We will sell EUR at 122.65 or upon a break below 121.54 with a 123.95 stop and take profit at 117.50.