29.08.201210:18 Forex Analysis & Reviews: EUR/JPY Elliott Wave Analysis for August 29 - 2012

Today's Support and Resistance Levels:

S1: 98.46                      R1: 99.01

S2: 98.21                      R2: 99.18

S3: 97.98                      R3: 99.59

Technical Overview:
Important support at 97.80 did hold for a break above 98.71 confirming that red wave 5 is building towards 99.59 and maybe even 100.60. In a short term we can expect support in the 98.25 - 98.35 area to protect the downside for a break above 99.18 towards the first target near 99.59.
Once this red wave 5 is in place, it will mark the end of black wave 3, which will be followed by a correction in black wave 4. Looking at black wave 2, we can clearly find a simple deep zigzag correction and, therefore, we should expect black wave 4 to be a shallow but complex correction. Whether black wave 4 begins from 99.59 or 100.60, we should expect a correction to just above 97.88.

Trading Recommendation:
You should be long from 95.85 with stop at 97.75. Consider taking profit at 99.50, which will leave you with a nice profit of 365 pips. If you are not long EUR already, you can buy EUR at 98.40 with the same stop and take profit levels.