FX.co ★ Elliott wave analysis of EUR/JPY for May 22, 2014

Today's Support and Resistance levels:

R3: 140.21

R2: 139.74

R1: 139.31

Current spot: 138.95

S1: 138.58

S2: 138.14

S3: 137.55

Technical summary:

We have changed our short-term count slightly. We have moved blue wave iii down to 138.14 as this count would fit the internal Fibonacci relationships better. That means we are now looking for blue wave iv towards 139.74 and maybe even towards 140.21 (less likely though) before the next impulsive decline in blue wave v towards 137.21. This will end red wave iii and we should then be looking for a flat consolidation as red wave iv before lowerng in red wave v towards 135.56.

Trading recommendation:

Our stop at 139.05 was hit for a nice profit. We will sell EUR again at 139.60 and place our stop at 141.25.