FX.co ★ Elliott wave analysis of EUR/JPY for November 5 - 2014

Today's support and resistance levels:

R3: 143.44

R2: 143.26

R1: 143.16

Currnt spot: 143.13

S1: 142.85

S2: 142.50

S3: 142.18

Technical summary:

EUR/JPY is just powering ahead higher, but we think that red wave iii ended at 143.44 and after a correction towards 141.83 in red wave iv, red wave v will take over for the next rally higher towards 144.64. In the short term, a break below support at 143.04 will confirm that the correction in red wave iv is unfolding. After a powerful rally like what has been seen in red wave iii, we should only expect a minor correction in red wave iv.

Trading recommendation:

We bought EUR at 142.25 and will lift our stop to 143.00 and if done, we will re-buy EUR at 142.00 with a stop at 140.30.