FX.co ★ Elliott Wave analysis of EUR/JPY for November 13, 2013

Today's Support and Resistance levels:

R3: 135.50

R2: 134.95

R1: 134.24

Current spot: 133.73

S1: 133.60

S2: 133.15

S3: 132.91

Technical summary:

The facts, that we did not see a break below 131.12 and saw an unexpected break above 133, which has revived the ending diagonal formation and is calling for one final rally above 135.50 towards 137.47 and maximum 138.17 (wave iii cannot be the shortest wave and that would be the case if we see a break above 138.17).

In the short term we will be looking for a move closer to 134.24 followed by a correction towards 133.60 and maybe even lower towards 132.91 before the next rally higher.

Trading recommendation:

Our stop at 133.75 was hit for a loss. We will wait for a better buying opportunity closer to 132.91.