FX.co ★ Elliott wave analysis of EUR/JPY for May 15, 2014

Today's Support and Resistance levels:

R3: 140.37

R2: 139.88

R1: 139.43

Current spot: 139.18

S1: 138.75

S2: 138.12

S3: 137.36

Technical summary:

The decline is accelerating in wave three lower, just as we were expecting. As the next downside target for red wave iii we are looking for 137.01, but after a flat kind of consolidation more downside price action is expected.

In the short term we would like to see minor resistance at 139.43 to protect the upside, but we will have to accept the possibility of a move closer to 139.88 before the next downside pressure. However, a break above 139.88 should not be seen at any time.

Trading recommendation:

Stay short in EUR from 140.95 and move your stop lower to 139.95. If you are not short in EUR yet, then sell near 139.43 with the same stop at 139.95.