03.07.201309:28 Forex Analysis & Reviews: Elliott Wave analysis of EUR/JPY for July 3, 2013

Today's support and resistance levels:

R3: 131.12

R2: 130.86

R1: 130.69

Current Spot: 130.55

S1: 130.30

S2: 129.83

S3: 129.38

Technical overview:

We have seen a rally to 131.12 as the high, which is just below our ideal target for red wave c at 131.27. We think there is a very high possibility that the red wave c and black wave b have topped and the black wave c down to at least 124.96 has taken over. However, in order to confirm that the black wave c is developing, we need a break below 130.30 and more importantly a break below 129.83. As long as support at 130.30 is protecting the downside, we could see one last swing higher towards 131.27, but we find it more likely to find resistance at 130.69, which will protect the upside for the break below 130.30.

Trading recommendation:

We have missed our entry to sell EUR at 131.15 with just 3 smal pips. We will keep our sell order at 131.15 just in case we see one more swing higher to 131.27 and we will place a EUR-sell order at 130.25 (one order done cancels the other). We will place our stop at 132.60.