FX.co ★ Elliott wave analysis of EUR/JPY for April 3, 2014

Today's Support and Resistance levels:

R3: 144.41

R2: 143.79 - Important resistance

R1: 143.47

Current spot: 143.03

S1: 142.72

S2: 142.43

S3: 142.00

Technical summary:

As long as important resistance at 143.79 protects the upside, the above count will stay our preferred count. We will be looking for a break below minor support at 142.72 to add confidence in our preferred count, but only a break below important short-term support at 141.78 confirms that the rally of the 139.96 low was a wave ii correction and more downside pressure should be seen for a decline towards 139.96 and below for a move closer to 138.08 and possibly even lower towards 136.80.

Only a break above 143.79 invalidates our preferred count and calls for an alternate count, which shows that a flat or even an expanded flat correction is unfolding for a move higher to the former top at 145.69, before renewed downside pressure should be expected.

Trading recommendation:

Stay short from 142.35 with a stop at 143.80. If you are not short in EUR yet, then sell after a break below 142.72 with the same stop at 143.80.