FX.co ★ EUR/JPY - Elliott Wave Analysis for September 3 - 2012

Today's Support and Resistance Levels:

S1: 98.22 R1: 98.60

S2: 97.98 R2: 99.02

S3: 97.80 R3: 99.36

Technical Overview:

We are still looking for one last high to end red wave 5 and, at the same time, black wave 3 in the rally, that began from 94.92. The ideal target for this rally would be 99.59, but the latest price-action indicates, that an ending diagonal might be building and if this is the case, the last rally will not likely make all the way to 99.59, but likely stall near 99.36 and set the stage for a correction in black wave 4 towards the 97.80 - 97.90 area before the final push higher towards 101.62.

Trading Recommendation:

You should be long EUR against JPY from 95.85 with a 97.75 stop and take profit at 99.25.