FX.co ★ EUR/JPY Elliott wave analysis for May 1, 2013

Today's support and resistance levels:

S1: 127.83 R1: 128.52

S2: 127.61 R2: 128.85

S3: 127.33 R3: 129.39

Technical overview:

Our preferred count shows that a wave iv triangle is developing and we are currently seeing wave d of the triangle developing. A triangle under the Elliott wave principle has five waves and is a continuation pattern, which is why we expect one last thrust towards the upside once this triangle is finished. In the short term, we expect to see minor support at 127.83 protecting the downside for a break above 128.52 confirming a continuation higher towards 129.39 and likely closer to 130.00 before wave d is over and the final wave e develops to the downside.

Trading recommendation:

We long EUR from 127.30 with a close stop at 127.00. If you do not have long EUR positions, you should buy EUR close to 127.83 or upon a break above 128.52 (one order done cancels the other) with the same stop.