FX.co ★ Elliott Wave Analysis of EUR/JPY for October 1, 2013

Today's Support and Resistance levels:

R3: 134.71

R2: 133.94

R1: 133.53

Current Spot: 133.03

S1: 132.75

S2: 132.44

S3: 132.25

Technical summary:

Wave ii saw a low at 131.64, which was just before the ideal corrective target of 131.43. The rally from the 131.64 low is clearly impulsive, which indicates that wave iii is developing. However, we need a clear break above minor resistance at 133.53, but once this resistance is overcome we should see a powerful rally higher towards at least 137.45 and likely even higher. In the short term, we are looking for a minor correction down to the 132.25 - 132.44 area, from where the next rally higher towards 133.53 should be launched.

Trading recommendation:

Buy EUR at 132.55 or upon a break above 133.53 and place your stop at 131.60.