FX.co ★ Elliott Wave Analysis of EUR/JPY for January 17, 2014

Today's Support and Resistance levels:

R3: 142.71

R2: 142.40

R1: 142.16

Current Spot: 141.97

S1: 141.84

S2: 141.53

S3: 141.39

Technical summary:

It seems that wave ii ended just below our expected target between 143.09 - 143.17 as the top has been at 142.91. If the powerful wave iii has taken over we should see a decline to at least 134.47. In the short term we will be looking for minor resistance at 142.17 to protect the upside for a decline to 141.53 and maybe 141.39 before a correction back towards the 142.16 - 142.38 area before renewed downside pressure should be expected.

Trading recommendation:

We sold EUR at 142.35 and moved our stop lower to 142.95 and take profit at 141.60. If the take profit target is hit sell EUR again at 142.15.