25.07.201310:38 Forex Analysis & Reviews: Elliott Wave analysis of EUR/JPY for July 25, 2013

Long-term review

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Today's Support and Resistance levels:

R3: 133.20

R2: 132.74

R1: 132.49

Current Spot: 132.24

S1: 132.00

S2: 131.80

S3: 131.37

Technical overview:

The very bumpy b-wave continues to work its way higher towards our ideal target, which is at the former high at 133.81. That said we have seen the first signs of this move getting weaker and it is loosing momentum all the time now. Therefore, we are getting closer to the b-wave top and should be prepared for the powerful decline in wave c taking over. The first target for wave c will be at 124.96, but it could extend and break below 124.96 for a decline closer to the bottom of wave 4 of one lessor degree, which comes in at 118.73. In the short term we are still looking for slightly higher levels as long as support at 131.37 and more importantly support at 130.76 protects the downside, but a break below 131.37 is a new clear sign of weakness, while a break below 130.76 will indicate, that wave c is developing.

Trading recommendation:

We are looking for a EUR selling opportunity and will place sell orders at 133.20 and at 130.75 (one order done cancels the other). We will place our stop at 134.60.

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