FX.co ★ Elliott wave analysis of EUR/JPY for December 18, 2013

Today's support and resistance levels:

R3: 142.35

R2: 142.21

R1: 141.95

Current spot: 141.82

S1: 141.80

S2: 141.43

S3: 140.98

Technical summary:

Important support at 140.91 is still unbroken, which keeps the underlying uptrend intact. However, we have seen a break below the support line from 134.10 adding confidence in an important top being in place at 142.83.

In short-term we will be looking for a minor rally towards 142.35 as long as support at 141.39 protects the downside. From 142.35 or upon a break below 141.39, we expect a new and this time successful break below important support at 140.91 for a continuation lower towards 138.43.

Trading recommendation:

We sold EUR at 141.70 with a stop at 142.90. If you are not long EUR yet, then sell close to 142.35 or upon a break below 141.39 with the same stop at 142.90.