FX.co ★ Elliott wave analysis of EUR/JPY for September 26 - 2014

Today's support and resistance levels:

R3: 139.15

R2: 139.10

R1: 139.01

Current spot: 139.91

S1: 138.81

S2: 138.71

S3: 138.61

Technical summary:

The break below support at 138.47 has forced a short term recount. Instead of a 1-2 / 1-2 count, the rally from 135.80 to 141.22 only was wave i and the ongoing correction is wave ii. This wave ii correction could be over as it already has corrected 50% of wave i, but we need a break above minor resistance at 139.70 and more importantly above 140.22 to confirm, that wave ii is over and wave iii higher towards 143.79 is developing.

Trading recommendation:

Our stop at 138.40 was hit for a small loss and we will buy EUR at 137.95 or upon a break above 139.70.