FX.co ★ Elliott Wave Analysis of EUR/JPY for September 9, 2013

Today Support and Resistance levels:

R3: 132.42

R2: 132.14

R1: 131.84

Current Spot: 131.21

S1: 131.03

S2: 130.86

S3: 130.63

Technical summary:

Wave ii went a little deeper than to the expected level of 130.64 (the low was at 129.89), but that does not change anything in the larger picture. In the short-term I am looking for support at 130.86 to protect the downside for a break above 131.84 and more importantly a break above 132.14, which would call for 132.42 on the way towards 134.49 and possibly even higher as we thrust out of this B-wave triangle. In the long term I am looking for much higher levels and a rally towards 170.00.

Trading recommendation:

Stay long in EUR from 130.75 with your stop at 129.29.