FX.co ★ Elliott Wave analysis of EUR/JPY for September 3, 2013

Today's Support and Resistance levels:

R3: 131.95

R2: 131.60

R1: 131.34

Current Spot: 131.18

S1: 130.98

S2: 130.85

S3: 130.56

Technical summary:

We have seen a very impulsive rally of the low wave e at 129.30. In the short term, I am looking for support at 130.98 to protect the downside for the next rally higher towards the triangle resistance line near 132.00. We should expect this resistance line to survive the first attempt to break it and call for a minor correction towards 130.85, before next attempt will likely thrust out of the triangle for a continuation higher towards 135.14. In the onger term, we are looking for even higher levels in this cross.

Trading recommendation:

Stay long in EURJPY from 130.25 and move your stop higher to 129.25. If you are not long already, then buy near 130.85 with the same stop at 129.25.