18.07.201210:11 Forex Analysis & Reviews: EUR/JPY - Elliott Wave Analysis for July 18, 2012

Today's Support and Resistance Levels:

Support                         Resistance

1: 96.37                        1: 97.37

2: 96.11                        2: 97.96

3: 95.57                        3: 98.13

Technical Overview: 

The correction from 96.40 (black wave iv) is still ongoing and should ideally reach 97.69 before the final decline in black wave v takes over. Even though we ideally should see black wave iv reach 97.96 it is no necessity. This correction should be both shallow and complex in its structure, which we already have seen.

Short-term, a break below 96.37 will indicate that black wave iv is over and black wave v is under way towards the ideal downside target near 94.58. However as long as support at 96.37 protects the downside we should expect a continuation towards 97.96 before black wave iv is over. 

Trading Recommendation:

Sell EUR against JPY at 97.90 or upon a break below 96.37 (Sell at 96.25) with a 98.75 stop. Take profit at 94.75