FX.co ★ Elliott wave analysis of EUR/JPY for June 19, 2014

Today's Support and Resistance levels:

R3: 139.77

R2: 139.29

R1: 138.90

Current spot: 138.78

S1: 138.64

S2: 138.39

S3: 138.15

Technical summary:

The wave ii correction from 137.72 is still unfolding. Ideally we will see resistance at 138.90 protecting the upside for a break below support 1.3857 and more importantly below support at 138.40, indicating that wave ii is over and wave iii lower to 134.67 is unfolding. However, a clear break above resistance at 138.90 will prolong wave ii slightly higher towards 139.18 before lower in wave iii.

Trading recommendation:

We are neutral and will sell a break below 138.55 with our stop placed at 139.55.