FX.co ★ Elliott wave analysis of EUR/JPY for December 19, 2013

Today's Support and Resistance levels:

R3: 142.89

R2: 142.54

R1: 142.41

Current Spot: 142.14

S1: 141.67

S2: 141.27

S3: 140.91

Technical summary:

FED was fiddling with the Market yesterday, which produced a short term hick up. However, as support at 140.91 stayed unbroken we knew, that the uptrend was still intact and FED's hick up produced a minor new high at 142.89. In the short term we would like to see minor resistance at 142.41 protect the upside for a break below 141.86 and ideally a break just below 140.91 confirming that a top is in place at 142.89. That said, we will have to stay open minded for a possible new high above 142.89 as long as important support at 140.91 stays unbroken.

Trading recommendation:

Stay short in EUR from 141.70 with your stop at 142.90. If you are not short in EUR yet, then sell close to 142.41 with the same stop at 142.90.