Elliott Wave Analysis of EUR/JPY for February 5, 2014
February 5, 2014 8:35 am
Today’s Support and Resistance levels:
R3: 137.93
R2: 137.65
R1: 137.18
Current Spot: 136.82
S1: 136.09
S2: 135.36
S3: 134.77
Technical summary:
As expected, we saw a correction from the 136.22 low. The expected correction could have terminated slightly before our second target at 137.65 (the top came in at 137.54). We are now ready for the next impulsive decline towards 135.36 and possibly even lower towards 134.77. At this point only a break above 137.18 prolongs the correction towards 137.65 and maybe even slightly higher towards 137.93 before the next downside pressure.
Looking at the longer term picture, we are now getting close to the first major corrective target for the rally from 94.10 to 145.69, the 23.6% corrective target, which comes in at 133.52. We still think that the ideal corrective target is the 38.2% corrective target, which comes in at 125.99.
Trading recommendation:
Stay short from 141.80 and keep your stop at 138.30. If you are not short EUR yet, then sell EUR at near 136.91 with the same stop at 138.30.
The material has been provided by InstaForex Company – www.instaforex.com
Today’s Support and Resistance levels:
R3: 137.93
R2: 137.65
R1: 137.18
Current Spot: 136.82
S1: 136.09
S2: 135.36
S3: 134.77
Technical summary:
As expected, we saw a correction from the 136.22 low. The expected correction could have terminated slightly before our second target at 137.65 (the top came in at 137.54). We are now ready for the next impulsive decline towards 135.36 and possibly even lower towards 134.77. At this point only a break above 137.18 prolongs the correction towards 137.65 and maybe even slightly higher towards 137.93 before the next downside pressure.
Looking at the longer term picture, we are now getting close to the first major corrective target for the rally from 94.10 to 145.69, the 23.6% corrective target, which comes in at 133.52. We still think that the ideal corrective target is the 38.2% corrective target, which comes in at 125.99.
Trading recommendation:
Stay short from 141.80 and keep your stop at 138.30. If you are not short EUR yet, then sell EUR at near 136.91 with the same stop at 138.30.
The material has been provided by InstaForex Company – www.instaforex.com
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