16.07.201411:05 Forex Analysis & Reviews: Elliott wave analysis of EUR/JPY for July 16, 2014

Long-term review

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Today's support and resistance levels:

R3: 138.08

R2: 137.98

R1: 137.88

Current spot: 137.81

S1: 137.71

S2: 137.50

S3: 137.10

Technical summary:

As expected, the correction in blue wave ii ended at 138.45. It should be just a matter of time before we see acceleration lower to 135.49 as wave iii develops. A break below minor support at 137.63 will confirm the expected acceleration lower to 135.49. Wave iii could extend its decline, but taking into consideration, that the equality target between wave A and C comes in at 134.34. It will be reasonable to expect wave iii to end at 135.49 giving wave iv and v room to develop.

Trading recommendations:

We are short in EUR from 138.95 and will lower our stop to 138.50. If you are not short in EUR yet, then sell upon a break below 137.63 with stop placed at 138.50.

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