Elliott Wave Analysis of EUR/JPY for January 23, 2014
January 23, 2014 11:15 am
Today’s Support and Resistance levels:
R3: 142.90
R2: 142.64
R1: 142.42
Current spot: 142.17
S1: 141.88
S2: 141.46
S3: 141.03
Technical summary:
The failure to break below 140.92 followed by a break above 141.85 is quite a surprise and has opened up for a much more complex correction. We will look for resistance at 142.64, but the possibility for a break above resistance at 142.90 as long as support at 141.78 to protect the downside has become much more likely. That said, we will be looking for a possible top at 142.64 to end red wave ii for a decline below 141.78. A break below 141.78 will confirm that red wave ii is in place for a new impulsive decline. However, the risk is a break above 142.90, which will prolong black wave ii for a move closer to 143.17, before the black wave ii correction is finished.
Trading recommendation:
Stay short in EUR from 141.85 with your stop at 142.90. If you are not short in EUR yet, then sell upon a break below 141.78 with the same stop at 142.90.
The material has been provided by InstaForex Company – www.instaforex.com
Today’s Support and Resistance levels:
R3: 142.90
R2: 142.64
R1: 142.42
Current spot: 142.17
S1: 141.88
S2: 141.46
S3: 141.03
Technical summary:
The failure to break below 140.92 followed by a break above 141.85 is quite a surprise and has opened up for a much more complex correction. We will look for resistance at 142.64, but the possibility for a break above resistance at 142.90 as long as support at 141.78 to protect the downside has become much more likely. That said, we will be looking for a possible top at 142.64 to end red wave ii for a decline below 141.78. A break below 141.78 will confirm that red wave ii is in place for a new impulsive decline. However, the risk is a break above 142.90, which will prolong black wave ii for a move closer to 143.17, before the black wave ii correction is finished.
Trading recommendation:
Stay short in EUR from 141.85 with your stop at 142.90. If you are not short in EUR yet, then sell upon a break below 141.78 with the same stop at 142.90.
The material has been provided by InstaForex Company – www.instaforex.com
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