Elliott Wave Analysis of EUR/JPY for October 14, 2013
October 14, 2013 11:15 am
Today’s Support and Resistance levels:
R3: 134.50
R2: 133.98
R1: 133.54
Current Spot: 133.31
S1: 133.04
S2: 132.70
S3: 132.42
Technical summary:
Red wave iii ended just 9 small pips below the ideal wave iii target at 133.69, and we are currently looking for a decline to the 132.42 – 432.70 support zone for red wave iv. Once this support zone is tested we should see red wave v higher towards 133.98 as the ideal target. This rally should just be the first wave of black wave iii, which at least should make it to 137.02, but it will be more likely, that black wave iii becomes extended and continues higher towards 140.51, where black wave iii will be 1.618 times black wave i.
At no point should the ongoing red wave iv trade below 131.57, as that would leave us with an overlap between red wave i and red wave iv, which is not allowed for an impulsive rally.
Trading recommendation:
Our stop at 133.10 was hit for a nice profit. We are looking to buy EUR at 132.75 or upon a break above 133.55 (One-cancels-the-other) for the next rally higher. Place stop at 131.55.
The material has been provided by InstaForex Company – www.instaforex.com
Today’s Support and Resistance levels:
R3: 134.50
R2: 133.98
R1: 133.54
Current Spot: 133.31
S1: 133.04
S2: 132.70
S3: 132.42
Technical summary:
Red wave iii ended just 9 small pips below the ideal wave iii target at 133.69, and we are currently looking for a decline to the 132.42 – 432.70 support zone for red wave iv. Once this support zone is tested we should see red wave v higher towards 133.98 as the ideal target. This rally should just be the first wave of black wave iii, which at least should make it to 137.02, but it will be more likely, that black wave iii becomes extended and continues higher towards 140.51, where black wave iii will be 1.618 times black wave i.
At no point should the ongoing red wave iv trade below 131.57, as that would leave us with an overlap between red wave i and red wave iv, which is not allowed for an impulsive rally.
Trading recommendation:
Our stop at 133.10 was hit for a nice profit. We are looking to buy EUR at 132.75 or upon a break above 133.55 (One-cancels-the-other) for the next rally higher. Place stop at 131.55.
The material has been provided by InstaForex Company – www.instaforex.com
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