FX.co ★ EUR/JPY Elliott Wave Analysis for August 8 - 2012

Today's Support and Resistance Levels:

S1: 96.83 R1: 97.40

S2: 96.44 R2: 97.80

S3: 96.27 R3: 98.13

Technical Overview:
Having failed to break above 97.80, the correction in red wave ii can be still regarded as a flat correction, which means that we shall see one more decline below 96.70 before red wave ii is over. Then a more powerful red wave iii can take over for a rally towards 100.30 and possibly higher towards 101.52.

Trading Recommendation:
You should be long EUR against JPY from 95.85 with a 94.95 stop. If you are not long EUR already, use the decline to just below 96.70 to buy EUR with the same stop.