FX.co ★ EUR/JPY - Elliott Wave Analysis for October 4 - 2012

Today's Support and Resistance Levels:

S1: 101.08 R1: 102.10

S2: 100.69 R2: 102.97

S3: 100.16 R3: 103.85

Technical Overview:

We have finally broken above resistance at 101.20 and the impulsive character is becoming clearer and begins to gather pace. The next minor target we should consider is around 102.10, which is likely to put up a decent fight and maybe even cause a correctional reverse move towards the 100.71 - 100.92 area. However, resistance at 102.10 should be quickly overcome as well, as wave 5 continues its rally higher towards its first target at 104.57 and probably even higher towards 105.69.
Once we have this fifth wave in place, the top of wave 1 of one larger degree should be marked, as we have been following since the indicator was at the level of 94.10.

Trading recommendation:

You should be long EUR from 100.20 and lift your stop to 100.35. If you are not long EUR already, you should buy at 100.95 with the same stop.