FX.co ★ Elliott wave analysis of EUR/JPY for June 11, 2014

Today's support and resistance levels:

R3: 139.46

R2: 139.18

R1: 138.75

Current Spot: 138.48

S1: 138.44

S2: 138.29

S3: 138.11

Technical summary:

The decline has been much stronger than expected and has forced a short-term recount, as we broke below support at 138.67. This new short term count indicates that an expanded flat correction has been unfolding since 139.96 and wave c of this expanded flat likely ended with the test of 138.29 early today. However, to confirm that wave c did indeed end at 138.29 we need a break above minor resistance at 138.59 and more importantly a break above resistance at 138.75 confirming a new rally towards 140.08 and higher towards 141.10.

Trading receommendation:

Our stop at 138.90 was hit for a loss. We will re-buy EUR here at 138.48 with a stop at 137.90.