FX.co ★ Elliott wave analysis of EUR/JPY for May 2 - 2013

Today's support and resistance levels:

S1: 127.85 R1: 128.42

S2: 127.60 R2: 128.82

S3: 127.19 R3: 129.45

Technical overview:

The wave 4 triangle is still unfolding. We are currently in wave d of the triangle, which we expect will move higher towards 129.45 and possibly closer to 130.00 before terminating and the final e wave takes over for a minor decline towards 129.00. Once the e wave is done we expect a thrust out of the triangle towards the upside for the final rally higher towards 135.47, which will terminate the entire rally from 94.10 and wave (1) or A. In short-term we are looking for minor support at 127.85 to protect the downside for the next rally higher. A break above 128.42 will be the first indication that the rally towards 129.45 is underway.

Trading recommendation:

We long EUR from 127.30 with a close stop at 127.00. If you do not have long EUR positions, then buy EUR here or upon a break above 128.42 with the same stop.