FX.co ★ EUR/JPY - Elliott Wave Analysis for October 18, 2012

Today's Support and Resistance Levels:

S1: 103.42 R1: 103.85

S2: 103.14 R2: 104.19

S3: 102.91 R3: 104.71

Technical Overview:

The fifth wave rally from 101.03 continues to progress according to the plan. We can observe a test of the top of wave 3 at 103.85 at the moment. Once this top is broken all requirements for the entire rally 94.10 are fulfilled. That means at that point we will be able to count five separate waves and that would give us our first impulsive wave of one larger degree. Also we have to remember that we are closing in on out first target at 104.71. Once this impulsive rally finds its top, we should expect a correction of the entire rally since the 94.10 low. But now we are still looking for a move closer to our target at 104.71.

Trading Recommendation:

You should be long EUR from 102.85. Move your stop higher to break-even and take profit at 104.50.