Elliott wave analysis of EUR/JPY for October 7 – 2014

Today’s support and resistance levels:

R3: 137.76

R2: 137.64

R1: 137.44

Current spot: 136.96

S1: 136.86

S2: 136.60

S3: 136.36

Technical summary:

We are still lock inside a narrow falling channel, but ideally support at 136.87 will protect the downside for a break above minor resistance at 137.76 and more importantly a break above 139.13, which will confirm a new test of the 141.22 top on the way higher to 143.79. At this point, the risk is obviously support at 136.87 and a break below here would call for a third zig-zag correction towards important support at 135.80. Support at 135.80 has to protect the downside to keep the bullish count alive.

Trading recommendation:

We are long EUR from 137.75 with stop and revers in place at 136.85. If you are not long EUR yet, then buy a break above 137.76 with the same stop. If support at 136.87 is broken, then sell EUR with a stop at 137.80 and take profit at 135.85.

The material has been provided by InstaForex Company – www.instaforex.com