FX.co ★ Elliott Wave analysis of EUR/JPY for November 7, 2013

Today's Support and Resistance levels:

R3: 134.84

R2: 134.15

R1: 133.73

Current Spot: 133.38

S1: 133.14

S2: 132.85

S3: 132.36

Technical summary:

The correction went a little lower yesterday to 132.86, but that does not change our overall bullish bias for a rally higher towards 137.05 over the coming weeks. We think we are currently in wave c of v of an ending diagonal. The downside should now be protected by strong short-term support at 132.86 for the continuation higher towards 134.14 and 134.84 on the way higher to 137.05. The absolute maximum for the ongoing wave c is at 138.39 as wave iii never can be the shortest wave and that would be the case here if we see a break above 138.39.

An unexpected break below 132.86 will confuse the picture, but only a break below 132.37 will invalidate our bullish count.

Trading recommendation:

Stay long EUR from 133.20 and keep you stop at 132.30. If you are not long EUR yet, then buy near 133.14 or upon a break above 133.50 with the same stop at 132.30.