03.11.201411:38 Forex Analysis & Reviews: Elliott wave analysis of EUR/JPY for November 3 - 2014

Long-term review

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Today's support and resistance levels:

R3: 141.88

R2: 141.38

R1: 141.12

Current spot: 140.86

S1: 140.65

S2: 140.40

S3: 139.98

Technical summary:

With the break above important short term resistance we know that wave [2] ended at 134.14 and wave [3] is developing. If wave [3] is going to be equal in length to wave [1], then we should see wave [3] rally to 186.04. If we zoom in on the short term picture, we have seen a strong rally in wave iii, which has broken above the resistance-line of the base-channel as we would expect. This is a strong indication, that the rally of the 134.14 low is impulsive. The first target for wave iii is at 142.06. Short term, we will look for support near 140.40 for the next rally higher, but even if support at 140.40 should be broken, the next support will be found just below at 139.98, which is likely to protect the downside for the rally to at least 142.09.

Trading recommendation:

We will be looking to buy EUR at 140.50 with a stop at 139.50.

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