12.02.201411:14 Forex Analysis & Reviews: Elliott wave analysis of EUR/JPY for February 12, 2014

Long-term review

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Today's Support and Resistance levels:

R3: 140.54

R2: 140.30

R1: 139.93

Current spot: 139.78

S1: 139.28

S2: 138.72

S3: 138.17

Technical summary:

Support at 139.50 did protect the downside for one last rally higher towards 140.30 (just 5 small pips above our 140.25 target). We are now looking for a break below support at 139.28 for confirmation that the top of red wave (ii) is in place for a new impulsive decline in red wave (iii) down to at least 131.61. However, the risk is that support at 139.28 protects the downside for a slightly new high, but at no point should resistance at 141.26 be broken as that will invalidate our bearish count.

Trading recommendation:

Stay short in EUR from 140.00 with your stop placed at 141.30. If you are not short in EUR already, then sell EUR upon a break below 139.28 with your stop placed at 140.35.

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