Elliott Wave Analysis of EUR/JPY for November 28, 2013
November 28, 2013 6:45 am
Daily chart
8 hourly chart
Today’s Support and Resistance Levels:
R3: 139.89
R2: 139.34
R1: 138.84
Current Spot: 138.70
S1: 138.31
S2: 137.67
S3: 137.10
Technical Summary:
With the break above 138.30 our ending diagonal count was invalidated. We have been back to the drawing board and has been forced to change our count slightly according to the new situation. However, the new count just shows that an even larger ending diagonal is developing and, as it was the case before we are close to the final top of wave v of 5, we should see a larger correction developing. If we measure the distance traveled from the bottom of wave 1 to the top of wave 3 and multiply it with 0.618, then we get a target of 139.89 for wave 5. This is one of the most common ways to calculate a wave 5 target. Therefore we are looking for support at 138.31 to protect the downside for a break above 138.84 confirming a continuation higher towards the ideal target at 139.89. A break below 138.31 will be the first indication that an important top is in place, but only a break below 137.67 will confirm the top and that a correction towards at least 124.92 is developing.
Trading Recommendation:
The take profit levels and revers to a short EUR-position was hit at 138.20, but the stop at 138.35 secured only a small loss. We are looking for a new EUR-short opportunity at 139.50 or upon a break below 137.67. Stop will be placed at 140.50.
The material has been provided by InstaForex Company – www.instaforex.com
Daily chart
8 hourly chart
Today’s Support and Resistance Levels:
R3: 139.89
R2: 139.34
R1: 138.84
Current Spot: 138.70
S1: 138.31
S2: 137.67
S3: 137.10
Technical Summary:
With the break above 138.30 our ending diagonal count was invalidated. We have been back to the drawing board and has been forced to change our count slightly according to the new situation. However, the new count just shows that an even larger ending diagonal is developing and, as it was the case before we are close to the final top of wave v of 5, we should see a larger correction developing. If we measure the distance traveled from the bottom of wave 1 to the top of wave 3 and multiply it with 0.618, then we get a target of 139.89 for wave 5. This is one of the most common ways to calculate a wave 5 target. Therefore we are looking for support at 138.31 to protect the downside for a break above 138.84 confirming a continuation higher towards the ideal target at 139.89. A break below 138.31 will be the first indication that an important top is in place, but only a break below 137.67 will confirm the top and that a correction towards at least 124.92 is developing.
Trading Recommendation:
The take profit levels and revers to a short EUR-position was hit at 138.20, but the stop at 138.35 secured only a small loss. We are looking for a new EUR-short opportunity at 139.50 or upon a break below 137.67. Stop will be placed at 140.50.
The material has been provided by InstaForex Company – www.instaforex.com
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