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

Today's Support and Resistance levels:

R3: 132.69

R2: 132.36

R1: 132.15

Current Spot: 132.08

S1: 131.78

S2: 131.42

S3: 131.12

Technical summary:

Important support near 130.81 held well, and gave our preferred count some relief, but we are not safe. Only a break above important resistance at 132.69 would indicate that a new impulsive rally is developing for a new run towards 134.95 and higher towards 137.35. However, as long as resistance at 132.69 protects the upside we have to be aware that a break below will change our preferred count to the our alternate count (see the chart below), which tells us that the correction from the May 22 high at 133.81 still is ongoing for a decline closer to 120.22.

Trading recommendation:

Stay neutral for now, but be ready to buy upon a break above 132.69 or sell after a break below 130.81.