FX.co ★ Elliott Wave analysis of EUR/JPY for Spetember 6, 2013

Today's Support and Resistance levels:

R3: 132.14

R2: 131.48

R1: 131.16

Current Spot: 131.07

S1: 130.86

S2: 130.64

S3: 130.26

Technical summary:

Wave i of the new impulsive rally ended at 132.14 and was followed by an zig-zag wave ii correction. This wave ii correction is still ongoing to minor resistance at 131.16 and more important resistance at 131.48, which protects the upside. As long as these resistance levels protect the upside we will be looking for one last decline closer to our target at 130.64. That said we have to remember, that this is a wave ii correction and the second waves are allowed to correct all of the first wave, but it can never break below the starting point of the first wave, which in this case is at 129.30. However, once we have seen a test of support at 130.64 or a break above 131.48 we are looking for a new powerful rally higher, at least, towards 133.48 and more likely 135.24.

Trading recommendation:

Our stop at 131.25 was hit first for a nice profit. Buy EUR again at 130.75 or upon a break above 131.48 and place stop at 129.29