FX.co ★ Elliott wave analysis of EUR/JPY for May 30, 2014

Today's Support and Resistance Levels:

R3: 139.36

R2: 138.81

R1: 138.50

Current Spot: 138.34

S1: 137.69

S2: 137.20

S3: 136.67

Technical Summary:

Not much has happened since yesterday. We are still looking for a continuation lower towards 137.69 and maybe even lower towards 136.67 to end the blue wave v and red wave iii as well as set the stage for a flat shallow correction in red wave iv. As the red wave ii was a simple zig-zag correction, that corrected most of the red wave i, we should expect the red wave to alternate by being a falt correction and only correct a minor part of the red wave iii.

Trading Recommendation:

Our stop at 138.45 was hit for a nice little profit. We will wait for the correction in the red wave iv to sell EUR again.