FX.co ★ EUR/JPY - Elliott Wave Analysis for July 20 - 2012

Today's Support and Resistance Levels:

Support Resistance
1: 96.14 1: 96.85
2: 95.57 2: 97.30
3: 94.58 3: 97.85

Technical Overview:
The break below the minor support at 96.37 demonstrates that the final wave v is going down towards the ideal target near 94.58. Looking at the waves from the wave 4 high at 101.62 we can see:
Wave i went down from 101.62 to 98.71
Wave ii went up from 98.71 to 101.39 (an expanded flat correction)
Wave iii went down from 101.39 to 96.40
Wave iv went up from 96.40 to 97.37 (a very shallow and flat correction) finally
Wave v is expected to decline into an ideal target area between 94.10 - 94.58 marking an important low for the entire decline since the 111.43 high.

Trading Recommendation:
We have been looking for a EUR selling opportunity near 97.90 which did not occur and we will now look for a new opportunity. Sell EUR against JPY at 96.75 or at 96.10 (one cancels the other) with a 97.40 stop. Take profit at 94.70.