09.04.201309:11 Forex Analysis & Reviews: EUR/JPY Elliott Wave analysis for April 9, 2013

Today's support and resistance levels:

S1: 129.33             R1: 129.94

S2: 128.77             R2: 130.30

S3: 128.13             R3: 130.90

Technical overview:

There was no time for even a small correction down to 126.67 before the next part of the rally took off. We are looking for wave iii of 5 to terminate close to 130.90, where wave iii will be 1.618 times longer than wave i. Once wave iii is finished, wave iv will take over. As wave ii is likely to be a very deep and relatively simple correction, we should expect wave iv to be a shallow and complex correction, but for now we should still focus on the upside as wave iii of 5 unfolds, with an ideal target near 130.90.

Trading recommendation:

We long EUR from 124.65 and will move our stop higher to 128.65 and place a take profit at 130.60. As we are in the final part of the rally from 119.10, we recommend to protect yourself and wait for a correction as a new opportunity to position yourself for the next rally higher.