FX.co ★ EUR/JPY Elliott Wave Analysis for August 1 - 2012

Today's Support and Resistance Levels:

S1: 95.67 R1: 96.30

S2: 95.50 R2: 96.62

S3: 95.33 R3: 97.32

Technical Overview:
The preferred scenario is that we have seen blue wave ii at 95.50 and should expect blue wave iii take off towards the 100.63 - 100.73 area soon. The short term risk is that a deeper correction in blue wave ii is needed towards 95.33 before we can expect the next rally in blue wave iii. As long as minor resistance at 96.62 have not been broken to the upside this risk remains, but a break above 96.62 will indicate that blue wave iii is well under way.

Trading Recommendation:
You should be long EUR against JPY from 95.85 with a stop at 94.05. Lift the stop to 95.45 upon a break above 97.32. If you are not long EUR already buy EUR upon a break above 96.62 (buy at 96.70) with a 95.45 stop.