Elliott Wave Analysis of EUR/JPY for January 15, 2014
January 15, 2014 9:15 am
Today’s Support and Resistance levels:
R3: 143.09
R2: 142.84
R3: 142.54
Current Spot: 142.33
S1: 142.19
S2: 142.04
S3: 141.92
Technical summary:
The clear break above 141.49 and more importantly the break above 142.04 has forced us to recount the decline from 145.69. Instead of black wave i ending at 141.49 we have moved the ending point to yesterdays low at 140.49. That also gives us a nice five wave decline, with some very nice wave relationship. Red wave iii became 2 times longer than red wave i and red wave v became almost exactly 61.8% of the distance traveled from the top of red wave i to the bottom of red wave iii.В
We are now looking for wave ii and the first target is at the top of wave iv of one lessor degree at 143.17, which also is close to the 50% corrective target at 143.09. However, we have to remember, that second waves are allowed to correct up to 100% of the first wave, which means we could see wave ii go all the way back to 145.69, but for now look for a move closer to 143.09 followed by a correction towards 141.47.
Trading recommendation:
Our stop at 142.10 was hit for a nice profit. Stay neutral for now, awaiting wave ii develop.
The material has been provided by InstaForex Company – www.instaforex.com
Today’s Support and Resistance levels:
R3: 143.09
R2: 142.84
R3: 142.54
Current Spot: 142.33
S1: 142.19
S2: 142.04
S3: 141.92
Technical summary:
The clear break above 141.49 and more importantly the break above 142.04 has forced us to recount the decline from 145.69. Instead of black wave i ending at 141.49 we have moved the ending point to yesterdays low at 140.49. That also gives us a nice five wave decline, with some very nice wave relationship. Red wave iii became 2 times longer than red wave i and red wave v became almost exactly 61.8% of the distance traveled from the top of red wave i to the bottom of red wave iii.В
We are now looking for wave ii and the first target is at the top of wave iv of one lessor degree at 143.17, which also is close to the 50% corrective target at 143.09. However, we have to remember, that second waves are allowed to correct up to 100% of the first wave, which means we could see wave ii go all the way back to 145.69, but for now look for a move closer to 143.09 followed by a correction towards 141.47.
Trading recommendation:
Our stop at 142.10 was hit for a nice profit. Stay neutral for now, awaiting wave ii develop.
The material has been provided by InstaForex Company – www.instaforex.com
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