FX.co ★ Elliott Wave analysis of EUR/JPY for March 25, 2013

Today's Support and Resistance levels:

S1: 123.31 R1: 124.09

S2: 122.83 R2: 124.50

S3: 122.07 R3: 124.86

Technical overview:

With the break below 121.83 our bullish count was invalidated and at the same we can consider that wave ii of 5 is still ongoing. We expect resistance at 124.09 to protect the upside for one last decline towards 120.66 before this zig-zag combination is over and wave iii of 5 will be ready to take over. That said, a break above 124.86 will clearly ease the downside pressure and indicate a new rally towards 126.04, but we need a break above here to confirm that wave iii of 5 is well under way already.

Trading recommendation:

We are long EUR from 124.65 with a stop at 118.70. If you are not long EUR already we will recommend you to buy at 120.75 or upon a break above 124.09 with the same stop.