FX.co ★ EUR/JPY Elliott Wave analysis for June 25, 2013

Today's support and resistance levels:

R3: 129.69

R2: 129.22

R1: 128.68

Current Spot: 128.15

S1: 127.85

S2: 127.28

S3: 126.76

Technical overview:

With the break below support at 128.14, we have had confirmation that a top is in place and a new decline towards important support at 124.96 is ongoing. Only a break below support at 124.96 will confirm our long held target at 118.73, where wave 2 will have corrected 38.2% of wave 1. In the short term, we are looking for a break below minor support at 127.85 for a continuation down to 127.28 and a break below here should accelerate the decline towards strong support at 124.96.

Trading recommendation:

We short EUR from 128.20 and will move our stop lower to 129.25. If you do not have short EUR positions already, then sell at a break below 127.85 with the same stop at 129.25.