FX.co ★ Elliott wave analysis of EUR/JPY for February 11, 2014

Today's Support and Resistance levels:

R3: 141.26

R2: 140.54

R1: 140.03

Current spot: 139.68

S1: 139.17

S2: 138.72

S3: 138.17

Technical summary:

The rally from 136.23 extended and has forced us to change the short term count. Our new preferred count shows that a series of waves i-ii is developing. If this count is correct we should soon see a top for a break below minor support at 139.50 and more importantly below support at 139.17 that will be the first good indication that, this red wave (ii) has terminated and red wave (iii) lower towards at least 131.61 is developing. However, as long as support at 139.50 protects the downside we could see a slightly higher high close to 140.25, but at no point can a break above 141.26 be allowed as that will invalidate this bearish count.

Trading recommendation:

We will sell EUR at 140.00 or upon a break below 139.50 with a stop at 141.30.