FX.co ★ EUR/JPY Elliott Wave Analysis for September 11 - 2012

Today's Support and Resistance Levels:

S1: 99.80 R1: 100.42

S2: 99.59 R2: 100.60

S3: 99.18 R3: 100.90

Technical Overview:

Red wave 5 is near its termination, but we still think that we are in the minor correction, which will likely make it down to the 99.59 - 99.70 area from where we should see the last rally higher towards the ideal target at 100.60. Once red wave 5 tops out, that will mark the the top of black wave 3 and call for a correction in black wave 4 down towards 98.40 and likely also 97.72.

As black wave 2 was simple, but deep correction. We should expect black wave 4 to be shallow and complex in shape (a bit like we saw it in red wave 4).

Trading Recommendation:

As we are close to a top, we are looking to sell EUR against JPY at 100.55 with a 100.90 stop and we will take profit at 97.90.