FX.co ★ Elliott Wave Analysis of EUR/JPY for September 19, 2013

Today's Support and Resistance levels:

R3: 133.87

R2: 133.62

R1: 133.37

Current Spot: 133.18

S1: 132.87

S2: 132.57

S3: 132.22

Technical summary:

With the break above the important short-term resistance we finally got the confirmation that red wave iii is developing towards at least 135.13 and more likely higher towards 137.28. For the short term, it would be ideal if support at 132.87 protects the downside for the break above 133.87, but only a break below support at 132.57 will confuse the overall bullish count and call for a move back down to 131.63, but this is a low probability scenario and as long as support at 132.87 is protecting the downside we should stay focused on the upside.

Trading recommendation:

Stay long in EUR from 132.60 and move your stop higher to break-even. If you are not long in EUR yet, then buy close to 132.87 with the same stop at 132.60