FX.co ★ Elliott Wave analysis of EUR/JPY for October 24, 2013

Today's Support and Resistance levels:

R3: 135.76

R2: 135.50

R1: 134.79

Current Spot: 134.26

S1: 133.89

S2: 133.60

S3: 133.33

Technical summary:

After a scary deep correction to 133.60 (100% of green wave i) yesterday we are looking for a new impulsive rally to develop. In the short term we expect minor support at 133.89 to protect the downside for a break above minor resistance at 134.79, which confirms a continuation higher towards at least 135.26 and likely even higher towards 136.08 as wave iii progresses.

However, at no time can a break below 133.60 be allowed as that would indicate, that a very complex correction is unfolding and will delay the upside progress for a decline to 133.30 and likely even closer to 132.61 before a new rally can be expected.

Trading recommendation:

Stay long EUR from 134.18 and move your stop higher to 133.85. If you are not long EUR yet, then buy a break above 134.79 with the same stop at 133.85.