FX.co ★ Elliott Wave Analysis of EUR/JPY for January 2, 2014

Today's Support and Resistance Levels:

R3: 145.32

R2: 145.17

R1: 145.01

Current Spot: 144.84

S1: 144.60

S2: 144.37

S3: 144.06

Technical Summary:

We are still looking for evidence that wave v of 5 is in place at 145.69. The first real evidence will be a powerful break below 144.37, but only a break below 140.91 confirms the top and that a major correction is developing.

Short-term we are at a Make It or Break It point. A break below the channel support line at 144.50 will add downside pressure, but as long as this support holds firm, the risk is to the upside for a break above 145.17 calling for a new challenge of the 145.69 top.

Trading Recommendation:

Stay short EUR from 145.10 and keep your stop at 145.20. If you are not short already, sell a break below 144.37 with the same stop at 145.20.