FX.co ★ EUR/JPY - Elliott Wave Analysis for October 1 - 2012

Today's Support and Resistance Levels:

S1: 99.63 R1: 100.10

S2: 99.48 R2: 100.67

S3: 98.98 R3: 101.05

Technical Overview:

The first part of the rally of 99.63 low did look impulsive in nature and it is significant that the 99.63 low stays intact for a break above 100.48 and more essential 100.67 to confirm that the low at 99.67 was important. It is unusually that a second wave corrects most of the first wave, however, we need confirmation that a new rally above 103.85 might have begun and that confirmation will come from a break above 100.67 which will call for a move towards at least 104.54 and possibly even to 105.69.

Any break below 99.63 will delay wave 5 for a decline closer to 99.48.

Trading Recommendation:

You should be long EUR from 100.20 with 99.45 stop. If you are not long EUR already, wait for a break above 100.67 before buying with the same stop.