FX.co ★ Elliott Wave analysis of EUR/JPY for September 10, 2013

Today's Support and Resistance levels:

R3: 134.49

R2: 134.14

R1: 133.81

Current Spot: 133.02

S1: 132.71

S2: 132.36

S3: 131.91

Technical summary:

So with the break above important resistance at 132.42 we had confirmation needed to confirm, that the expected thrust out of the B-triangle is developing. The first target is 133.81 with 134.14 and 134.49 as the next targets. Short-term support at 132.71 will ideally protect the downside for the rally higher towards 134.49, but only a break below 131.84 will question this new uptrend. In the long term I am looking for much higher levels in this pair and expect a rally higher towards 170.00.

Trading recommendation:

Stay long EUR from 130.75 and move your stop higher to 131.75. If you are not long EUR already, then buy close to 132.71 with the same stop at 131.75.