Elliott Wave Analysis of EUR/JPY for January 27, 2014
January 27, 2014 8:30 am
Today’s Support and Resistance levels:
R3: 141.17
R2: 140.78
R1: 140.50
Current spot: 140.45
S1: 140.12
S2: 139.68
S3: 139.15
Technical summary:
The expected decline is developing nicely. In the short term we expect resistance in the 140.50 – 140.78 area to protect the upside for a break below minor support at 140.40 and more importantly a break below 139.68, which confirms acceleration lower towards 135.39 in blue wave iii. A break below the base channel support line currently at 138.85 confirms the acceleration lower.
If blue wave ii extends to resistance at 141.17 and again to 141.46, but we doubt we will see blue wave ii that high, even though the second waves are allowed to correct all of the first wave.
Trading recommendation:
Stay short in EUR from 141.85 with stop at 141.80. If you are not short in EUR yet, then sell EUR in the 140.50 – 140.78 area with the same stop at 141.80.
The material has been provided by InstaForex Company – www.instaforex.com
Today’s Support and Resistance levels:
R3: 141.17
R2: 140.78
R1: 140.50
Current spot: 140.45
S1: 140.12
S2: 139.68
S3: 139.15
Technical summary:
The expected decline is developing nicely. In the short term we expect resistance in the 140.50 – 140.78 area to protect the upside for a break below minor support at 140.40 and more importantly a break below 139.68, which confirms acceleration lower towards 135.39 in blue wave iii. A break below the base channel support line currently at 138.85 confirms the acceleration lower.
If blue wave ii extends to resistance at 141.17 and again to 141.46, but we doubt we will see blue wave ii that high, even though the second waves are allowed to correct all of the first wave.
Trading recommendation:
Stay short in EUR from 141.85 with stop at 141.80. If you are not short in EUR yet, then sell EUR in the 140.50 – 140.78 area with the same stop at 141.80.
The material has been provided by InstaForex Company – www.instaforex.com
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