FX.co ★ Elliott wave analysis of EUR/JPY for June 5, 2014

Today's Support and Resistance Levels:

R3: 140.08

R2: 139.93

R1: 139.65

Current Spot: 139.56

S1: 139.33

S2: 139.07

S3: 138.68

Technical Summary:

Important resistance at 140.08 was in no danger yesterday. We are now looking for resistance at 139.65 to protect the upside for a break below support at 139.33 confirming the next decline towards support at 138.68 and likely even lower towards 138.10.

Only an unexpected break above 139.93 would cause a new challenge of important resistance at 140.08 and if broken, the short-term count will be changed to an unfolding triangle consolidation .

Trading receommendation:

We sold EUR at 139.49 and placed stop at 140.15. If you are not short EUR yet, then sell at 139.65 or upon a break below support at 139.33 with the same stop at 140.15.