FX.co ★ Elliott wave analysis of EUR/JPY for March 25, 2014

Today's Support and Resistance levels:

R3: 142.50

R2: 142.11

R1: 140.90

Current spot: 141.37

S1: 141.19

S2: 140.90

S3: 140.43

Technical summary:

The wave ii correction is becoming more complex than first expected. The deep decline from 141.89 have to be counted as an x-wave and that means a new zig-zag correction is developing. However, the ideal target area between 142.11 and 142.50 stays intact. In the short term, we will be looking for support near 141.19 for the next rally higher towards 141.90 and into the target area between 142.11 and 142.50 before the next real downside pressure.

Trading recommendation:

We sold EUR at 141.25, stop is placed at 143.85. If you are not short in EUR yet, then wait for selling at 142.40 with the same stop at 143.85.