FX.co ★ Elliott wave analysis of EUR/JPY for March 26, 2014

Today's Support and Resistance levels:

R3: 142.11

R2: 141.90

R1: 141.54

Current spot:141.28

S1: 141.08

S2: 140.69

S3: 140.43

Technical summary:

The complex correction from 140.43 is still unfolding. We continue to look for this ongoing wave ii towards the target area between 142.11 and 142.50, before the next impulsive decline can be expected. In the short term we will be looking for support at 141.08 to protect the downside for a break above minor resistance at 141.54, which will confirm a continuation higher towards the ideal target area between 142.11 - 142.40. Once this wave ii correction is over, look for a decline to at least 136.45.

Trading recommendation:

Close your short positions from 141.25 here at 141.28 with a small loss. Sell EUR again at 142.40 or upon a break below 140.66 and place your stop at 143.85.