FX.co ★ EUR/JPY Wave Analysis for August 14,2012

EUR/JPY Elliott Wave
Last week the EUR/JPY pair was trading in a downward move developing corrective 2 wave (coloured blue) of the bigger (3) wave (coloured green). Yesterday during the European session we could observe an ascending movement towards the 96.55 level. Therefore, during the New York session this currency pair continued trading in a bullish mood and the price reached a new 2-day high at 96.90 level. Today the EUR/JPY pair is trading around 97.00 level and we are expecting to see the price above 100.00 this week. In accordance with our wave rules and taking into account that the wave 3 retraces 161.8% of the wave 1, we can define the potential targets with Fibonacci extensions (94.92-97.80-95.70) with Take Profit 1 at 98.54 (100% of wave 1) and Take Profit 2 at 100.30 (161.8% of wave 1) To reduce the risk, we can use support point at 95.70 as Stop Loss.
Support and Resistance
(S3) 95.50 (S2) 95.87 (S1) 96.10 (PP) 96.47 (R1) 96.84 (R2) 97.07 (R3) 97.44
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 97.35 with Stop Loss 95.70, Take Profit 1 98.54 and Take Profit 2 100.30 are recommended.