06.08.201411:51 Forex Analysis & Reviews: Elliott wave analysis of EUR/JPY for August 6, 2014

Long-term review

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Today's support and resistance levels:

R3: 137.35

R2: 137.25

R1: 137.15

Current spot: 137.05

S1: 136.83

S2: 136.72

S3: 136.63

Technical summary:

With the break below support at 137.42, we had the confirmation needed to say, that red wave v lower 135.49 was developing. In a short term, we are looking for minor resistance at 137.25 to protect the upside for the break below support at 136.63 and more importantly below support at 136.36 for the decline to 135.49 to end red wave v and black wave iii. Once black wave iii is in place, we should see a correction in black wave iv to just below 138.00 before the final decline in black wave v to 134.34, where wave C will be equal in length to wave A.

Trading recommendation:

We are short in EUR from 138.00 and will move our stop lower to 137.60. If you are not short in EUR yet, then sell near 137.25 with the same stop at 137.60.

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