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02.05.2014 10:59 AM
Elliott wave analysis of EUR/JPY for May 2, 2014

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Today's Support and Resistance levels:

R3: 142.72

R2: 142.47

R1: 142.14

Current spot: 141.97

S1: 141.75

S2: 141.42

S3: 141.12

Technical summary:

We have been trading in a tight range for the last couple of days. Ideally resistance at 142.14 will protect the upside for a break below minor support at 141.75, and more importantly, a break below support at 141.42, that will confirm a new test of important support at 140.99. Only a break below here will add real downside pressure towards 140.08 and lower towards 136.55. However, if resistance at 142.14 is broken, a new rally towards 142.47 and likely even slightly higher towards 142.72 will be seen before the next downside pressure should be expected.

Trading recommendation:

Stay short in EUR from 141.68 with stop placed at 142.50.

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