FX.co ★ EUR/JPY - Elliott Wave Analysis for November 2, 2012

Today's Support and Resistance Levels:

S1: 103.32 R1: 103.97

S2: 103.06 R2: 104.42

S3: 102.60 R3: 104.75

Technical Overview:

Red wave ii is still ongoing, but momentum is clearly weakening and renewed downside pressure should be seen soon. A break below support at 103.32 will indicate that red wave ii is over and that wave iii down to 101.45 and likely even 100.97 has begun. It will still take a break above resistance at 104.42 to invalidate our bearish count. A break above 104.42 will call for a new high above 104.59 likely near 104.75, but it is not our preferred count.
As we said yesterday, we have met a very strong trend line resistance and it is not likely to be broken at the first try.

Trading Recommendation:

You should be short EUR from 104.50 with a stop at breakeven. If you are not short EUR already, you can sell here or upon a break below 103.32 with the same stop.