FX.co ★ Elliott Wave Analysis of EUR/JPY for February 3, 2014

Today's Support and Resistance levels:

R3: 139.23

R2: 138.66

R1: 138.24

Current spot: 137.89

S1: 137.39

S2: 136.97

S3: 136.67

Technical summary:

We have finally seen a break below the base channel support line, which heralds acceleration lower. In the short term we will be looking for minor resistance at 138.32 to protect the upside for a continuation lower towards 136.67 as blue wave (iii) before blue wave (iv) takes over for a correction towards 137.93, and then the final blue wave (v) lower to 136.15 to end blue wave iii.

Trading recommendation:

Stay short from 141.80 and lower your stop to 138.95. If you are not short in EUR yet, then sell EUR near 137.93 with the same stop at 138.95.