FX.co ★ Elliott Wave analysis of EUR/JPY for June 7, 2013

Today's Support and Resistance levels:

R3: 128.77

R2: 128.46

R1: 128.13

Current spot: 127.79

S1: 127.46

S2: 127.15

S3: 126.68

Technical overview:

Our second resistance at 130.60 did the job well and turned prices back down again in wave iii and we should be looking for 127.15 as the first target. However, we should see more downside after a shallow correction towards 128.51 and maybe even 128.91 before the next decline to at least 126.57 and possibly even lower to 126.11, which should make the bottom of wave iii. That said we should remember, that target for this major wave 2 is at 118.73, where wave 2 will have corrected 38.2% of wave 1.

Trading recommendation:

We are short EUR from 130.19 and will move our stop lower to 129.45. If you are not short EUR already, then wait for the possibility to sell near 128.51 with a stop at 129.45.