FX.co ★ Elliott Wave Analysis of EUR/JPY for October 17, 2013

Today's Support and Resistance levels:

R3: 134.55

R2: 134.07

R1: 133.84

Current Spot:133.65

S1: 133.53

S2: 133.24

S3: 132.96

Technical summary:

With the direct break above resistance at 133.63 we most likely had the confirmation we needed that red wave ii ended already with the test of 132.61 and red wave iii is unfolding.

Short-term support at 133.24 needs to protect the downside for an acceleration higher towards 134.55 and higher towards 134.95 as the next targets on the way towards the ideal red wave iii target at 137.04, as we expect red wave iii to extend. However, if important short-term support at 133.24 is broken, it will indicate that we need more time consolidation in the 132.61 - 133.84 range before the next impulsive rally is ready to take over.

Trading recommendation:

Stay long from 133.65 and raise your stop to 133.20. If you are not long in EUR yet, buy upon a break above 133.84 with the same stop at 133.20.