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05.08.2014 10:58 AM
Elliott wave analysis of EUR/JPY for August 5, 2014

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Today's support and resistance levels:

R3: 138.00

R2: 137.92

R1: 137.72

Current spot: 137.52

S1: 137.42

S2: 137.25

S3: 137.00

Technical summary:

We are looking for the first strong indication, that red wave v lower to 135.49 is unfolding. A break below minor support at 137.42 will be the first such indication and call for a continuation lower to 137.00 and lower to the ideal target for red wave v at 135.49.

In the longer term, we are still looking for a decline to the equality target for wave C at 134.34, where wave C is equal in length to wave A.

Trading recommendation:

We sold EUR at 138.00 and will move our stop lower to 137.91. If you are not short in EUR yet, then sell EUR near 137.72 or upon a break below 137.42 with the same stop at 137.91.

Summary
Urgency
Analytic
Torben Melsted
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