FX.co ★ Elliott Wave Analysis of EUR/JPY for April 26, 2013

Today's Support and Resistance levels:

S1: 127.85 R1: 128.81

S2: 127.54 R2: 129.39

S3: 127.12 R3: 129.91

Technical overview:

It is still undecided whether we are in a triangle consolidation or we have seen the final top for the entire rally from 94.10 to 131.12. The best fit to our scenario is that we are in a triangle consolidation and need one final thrust towards the upside for a rally close to 135.47 to finish the entire rally from 94.10. That said, we must accept the fact that a top already could be in place, but to confirm that outcome we need a break below 126.43 and more importantly a break below 124.71, which confirms that wave (2) is developing for a decline towards at least 118.73.

Trading recommendation:

We short EUR from 128.70, but will close our position here at 128.50 with a small profit. We will place two orders the first is a EUR-buying order, where we will buy EUR upon a break above 130.67 and the other is a EUR-selling order where we will sell EUR if we break below 126.43. One order done cancels the other.