FX.co ★ EUR/JPY Elliott Wave Count for April 2, 2012

Market Overview
On Friday during the European session the EUR/JPY pair was trading in an sideways trend from 109.05 to 109.90 level. During the New York session the EUR/JPY pair pushed price to the 110.60 level (2 Days High). The EUR/JPY pair has finished Friday's trading day few pips lower than the 110.55 level. Today during the Asian session we could observe the sideways trend; the price is currently around Friday's closing price.Today the EUR/JPY pair is expected to retest the 111.40 level. Also it is necessary to consider the data concerning the EURO Unemployment Rate and that can affect the rate of the pair.

Support and Resistance levels
(S3) 108.46 (S2) 109.06 (S1) 109.43 (PP) 110.03 (R1) 110.63 (R2) 111.00 (R3) 111.60

EUR/JPY Elliott Wave Analysis
The EUR/JPY pair has finished the wave 1 (colored blue) of the bigger wave 1 (colored green) in the point 109.87 and wave 2 (colored blue) in the point 108.77, Presently we can observe the end of the wave 3. There are two possible scenarios: firstly, if price continues to go higher, the next target for wave 3 will be seen at 261.8% of wave 1 in the point 112.00. The best place to set Stop Loss in this case will be at 110.20 level. Secondly, if we assume that wave 3 is completed because we have seen the price reached 161.8% of wave 1, we can expect that the price will start pushing in the bearish mood to the 109.90 level. In this case Stop Loss will be at 111.10 level.

Trading Forecast
Proceeding from Elliott Wave Rules, today the trend is expected to begin the upward movement. That is why Long position at levels 111.00 with Stop Loss at 110.20 and Take Profit at 112.00 are recommended.