FX.co ★ Elliott wave analysis of EUR/JPY for May 21, 2014

Today's Support and Resistance levels:

R3: 140.15

R2: 139.63

R1: 138.93

Current spot: 138.61

S1: 138.58

S2: 138.17

S3: 137.38

Technical summary:

It seems to be heading directly lower towards the red wave iii target at 137.01. The short-term minor resistance at 138.93 will ideally protect the upside for a break below support at 138.58 calling for a continuation lower towards 138.17 and 137.38 before the ideal target of 137.01.

In the long term we are still looking for a bigger correction of the 94.10 - 145.69 rally towards the ideal target near 126.00

Trading recommendation:

Stay short in EUR from 140.95 and move your stop lower to 139.05 If you are not short in EUR yet, then sell near 138.93 or upon a break below support at 138.58 with the same stop at 139.05.