FX.co ★ Elliott Wave analysis of EUR/JPY for January 8, 2014

Today's Support and Resistance levels:

R3: 143.52

R2: 143.31

R1: 143.16

Current Spot: 142.99

S1: 142.79

S2: 142.61

S3: 142.20

Technical summary:

We have seen our corrective target at 143.10 was tested, the high was 143.16. Now we will be looking for a break below 142.79 as the first indication that wave ii has ended and wave iii moves lower towards at least 138.85. A break below 142.61 confirms that wave iii is developing. However, as long as support at 142.79 protects the downside we could see wave ii move slightly higher towards 143.31 and maybe 143.52 before the top of wave ii is in place. 

Trading recommendation:

We are short EUR from 143.00. Stop will be placed at 145.70 expecting to move the stop lower soon. If you are not short EUR already, the sell a break below 142.79 with the same stop at 145.70.