FX.co ★ EUR/JPY - Elliott Wave Analysis for July 25 - 2012

Today's Support and Resistance Levels:

S1: 94.09 R1: 94.45

S2: 94.00 R2: 94.79

S3: 93.85 R3: 95.22

Technical Overview:
The path we drew yesterday has described the price action almost to perfection. With the new low at 94.09 all demands are fulfilled for the decline, not only from 101.62, but also from 111.43. We are now looking for a break above 94.79 as first indication that an important bottom is in place, while a break above yesterday’s high at 95.22 will add even more confidence in the bottom being in place for a rally towards strong resistance at 97.27. In long term we are looking for much higher levels towards at least the 101.39 - 101.62 area.

Trading Recommendation:
You should be long EUR against JPY at 94.20 and a stop at 93.50. If you are not long EUR already you can buy at 94.05 or upon a break above 94.79 (buy at 94.85) with the same stop. Upon a break above 95.22 lift stop to 94.05.