Elliott wave analysis of EUR/JPY for August 7, 2013
August 7, 2013 6:30 am
Today’s Support and Resistance levels:
R3: 130.11
R2: 129.88
R1: 129.69
Current Spot: 129.50
S1: 129.14
S2: 128.89
S3: 128.54
Technical summary:
The correction we had expected yesterday became slightly bigger, than we had thought. We expected a correction towards 130.40, but the high came in at 130.73. However, the decline from 131.97 to 129.80 was a clear five wave pattern (wave i of blue wave iii) which called for more downside action once the correction was over (wave ii of blue wave iii). We have now entered a part of the decline from 131.97, which is likely to be the strongest one. We are looking for a decline, at least, to 128.54, but this decline will likely extend lower towards 127.20 before wave iii of blue wave iii is over. In the short-term outlook, we are looking for resistance at 129.69 and maybe 129.86 to protect the upside for a break below 129.14 towards 128.54.
Trading recommendation:
Stay short on EUR from 129.55 and move stop lower to 130.75. Otherwise sell near 129.69 with stop at 130.75.
The material has been provided by InstaForex Company – www.instaforex.com
Today’s Support and Resistance levels:
R3: 130.11
R2: 129.88
R1: 129.69
Current Spot: 129.50
S1: 129.14
S2: 128.89
S3: 128.54
Technical summary:
The correction we had expected yesterday became slightly bigger, than we had thought. We expected a correction towards 130.40, but the high came in at 130.73. However, the decline from 131.97 to 129.80 was a clear five wave pattern (wave i of blue wave iii) which called for more downside action once the correction was over (wave ii of blue wave iii). We have now entered a part of the decline from 131.97, which is likely to be the strongest one. We are looking for a decline, at least, to 128.54, but this decline will likely extend lower towards 127.20 before wave iii of blue wave iii is over. In the short-term outlook, we are looking for resistance at 129.69 and maybe 129.86 to protect the upside for a break below 129.14 towards 128.54.
Trading recommendation:
Stay short on EUR from 129.55 and move stop lower to 130.75. Otherwise sell near 129.69 with stop at 130.75.
The material has been provided by InstaForex Company – www.instaforex.com
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