FX.co ★ Elliott Wave analysis of EUR/JPY for March 15, 2013

Today's Support and Resistance levels:

S1: 124.83 R1: 125.25

S2: 124.49 R2: 125.78

S3: 124.05 R3: 126.32

Technical overview:

It is most likely that wave ii of 5 ended at 124.05 and this support should not be broken at any time now. We are looking for a break above resistance at 125.78 as the confirmation that wave ii is indeed over and wave iii of 5 is developing for a rally higher to at least 130.72 and, more likely, we will see wave iii of 5 move even higher towards 134.58. At 134.58, wave iii will be 1.618 times longer than wave i. We are also looking for a very powerful rally in wave iii. Therefore, resistance should be broken without mush of a fight. Only a surprise break below 124.05 will delay the expected upside pressure for a move closer to 123.80 before the next upside rally can be expected.

Trading recommendation:

We bought EUR at 124.65 and have placed our stop at 118.70, but we will move our stop higher to 123.75 upon a break above 125.78. If you are not long EUR already then buy at 124.85 or upon a break above 125.78 with the stops.