Elliott Wave analysis of EUR/JPY for December 30, 2013
December 30, 2013 9:15 am
Daily chart
8-hour chart
Today’s Support and Resistance levels:
R3: 146.96
R2: 145.69
R1: 145.19
Current Spot: 144.77
S1: 144.55
S2: 144.37
S3: 144.01
Technical summary:
We saw an extended rally on Friday in a very thin Market with a high at 146.96, which could mark the top of wave v of 5. If this is the case, we should see a short-term rally towards 146.19 followed by a powerful decline towards at least 143.06 and possibly lower towards 141.73. However, the extension we saw on Friday could have changed the count to a slightly more bullish count, where wave iii of 5 just ended at 146.96, which means we still need wave four and five of 5. If this is the case, then wave iv is developing for a move first higher to 146.19 and then a decline towards at least 142.96 and more likely lower towards 141.26. In both cases we should be looking for a decline, but once we are near 141.00 the outcome of the two counts becomes totally different.
Trading recommendation:
We will sell EUR at 146.10 or upon a break below 144.58 with a stop at 147.00.
The material has been provided by InstaForex Company – www.instaforex.com
Daily chart
8-hour chart
Today’s Support and Resistance levels:
R3: 146.96
R2: 145.69
R1: 145.19
Current Spot: 144.77
S1: 144.55
S2: 144.37
S3: 144.01
Technical summary:
We saw an extended rally on Friday in a very thin Market with a high at 146.96, which could mark the top of wave v of 5. If this is the case, we should see a short-term rally towards 146.19 followed by a powerful decline towards at least 143.06 and possibly lower towards 141.73. However, the extension we saw on Friday could have changed the count to a slightly more bullish count, where wave iii of 5 just ended at 146.96, which means we still need wave four and five of 5. If this is the case, then wave iv is developing for a move first higher to 146.19 and then a decline towards at least 142.96 and more likely lower towards 141.26. In both cases we should be looking for a decline, but once we are near 141.00 the outcome of the two counts becomes totally different.
Trading recommendation:
We will sell EUR at 146.10 or upon a break below 144.58 with a stop at 147.00.
The material has been provided by InstaForex Company – www.instaforex.com
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