FX.co ★ Elliott Wave analysis of EUR/JPY for May 21, 2013

Today's Support and Resistance levels:

R3: 133.54

R2: 132.78

R1: 132.31

Current Spot: 132.13

S1: 132.00

S2: 131.68

S3: 130.95

Technical overview:

We observed support at 131.55 protecting the downside for a break above 132.13. It indicates, that we should see a new challenge of resistance in the 132.55 - 132.77 area. If this resistance is overcome we can expect a continuation higher towards 133.54 and the ideal target near 134.47. However, if support at 131.55 is broken and, more importantly, if support at 130.94 is broken we have to consider the possibility of a fifth wave failure at 132.55 and that the rally from 94.10 is over and a major correction is ongoing.

Trading Recommendation:

We bought EUR at 132.15 and has placed our stop at 131.50 and our take profit + revers of the position at 134.20. If you are not long EUR yet then buy a break above 131.30 with the same stop.