FX.co ★ EUR/JPY Elliott Wave Analysis for August 10 - 2012

Today's Support and Resistance Levels:

S1: 96.32 R1: 96.70

S2: 96.07 R2: 97.28

S3: 95.80 R3: 97.80

Technical Overview:
The failure to break back above minor resistance at 97.40 has turned the correction from 97.80 into a more complex correction (a triple zigzag correction). We are currently in the last leg down of the third zigzag, which ideally will terminate at 96.07 and set the stage for red wave iii towards 100.30 and likely even higher towards 100.72.
In a short term a break above 96.70 confirms that red wave ii is over and red wave iii is on its way.

Trading Recommendation:
You should be long EUR against JPY from 95.85 with a 94.95 stop. If you are not long EUR already, buy at 96.10 or upon a break above 96.70 with the same stop.