FX.co ★ Elliott wave analysis of EUR/JPY for July 29, 2014

Today's support and resistance levels:

R3: 137.25

R2: 137.11

R1: 137.00

Current spot: 137.01

S1: 136.92

S2: 136.82

S3: 136.72

Technical summary:

We are currently testing strong short-term support at 137.00, which ideally will protect the upside for a break below 136.92 and more important below support at 136.82. It confirms the next decline to the next support at 136.00, where we should see a minor flat correction unfolding before the last decline to the ideal target at 135.49 to end wave iii. If resistance at 137.00 is broken, the upside should be limited to 137.11, but the outcome is not our preferred result.

Trading recommendation:

We are short in EUR from 137.20 with stop placed at 137.50. If you are not short in EUR yet, then sell here at 137.00 with the same stop at 137.50.