FX.co ★ Elliott Wave analysis of EUR/JPY for June 26, 2013

Today's Support and Resistance levels:

R3: 129.14

R2: 128.68

R1: 128.45

Current Spot: 127.76

S1: 127.71

S2: 127.28

S3: 126.76

Technical overview:

We saw a new attempt to break below strong short-term support at 127.28 yesterday. This attempt failed, but it is as the downside pressure is getting stronger and stronger. A break below support at 127.28 should get things going towards the downside and indicate a new decline towards strong medium-term support at 124.96 and only a clear break below here will open up for our ideal wave 2 target at 118.73. However, as long as support at 127.28 is protecting the downside we could see a new test of the falling channel resistance just below 129.00, but it should continue protecting the upside for the break below strong short term support at 127.28.

Trading recommendation:

We are short EUR from 128.20 with stop placed at 129.25. If you are not short EUR already, then sell near 129.00 or upon a break below 127.28 with the same stop at 129.25.