FX.co ★ EUR/JPY - Elliott Wave Analysis for September 14 - 2012

Today's Support and Resistance Levels:

S1: 100.74 R1: 101.30

S2: 100.59 R2: 101.62

S3: 100.20 R3: 102.12

Technical Overview:

We saw a decline to 99.48 yesterday which could have been the start of a larger correction, but the following rally higher does look impulsive in nature and, therefore, we must assume that red wave 5 is extending itself. This definetly changes the technical picture to a much more bullish one than intitially anticipated. With the new more bullish picture in mind, the first target we should be looking for as a possible target for blue wave iii is at 101.95, but it's more likely, that blue wave iii is an extended wave, which would call for at least 103.46.

In short-term we are now looking for a move towards 101.28 before a correction down to support at 100.74 and maybe even 100.52 before the next rally higher sets in.

Trading Recommendation:

With the much more bullish picture in mind, we will again tune our focus towards buying EUR against JPY. We will buy EUR at 100.65 with a 99.48 stop.