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05.05.2014 12:34 PM
Elliott wave analysis of EUR/JPY for May 5, 2014

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Today's Support and Resistance levels:

R3: 142.38

R2: 141.99

R1: 141.65

Current spot: 141.42

S1: 141.12

S2: 140.63

S3: 140.08

Technical summary:

Important resistance at 142.47 has protected the upside and we are now looking for a break below minor support at 141.12 and more importantly a break below support at 140.99 as a confirmation that the downside pressure is mounting. In the larger picture we are still looking for a much deeper correction towards 126.00 as the ideal long-term target, but the battle between bulls and bears has been almost even and kept us in a narrow range for some time now. However, we do see an Elliott wave pattern that could indicate that the downside pressure finally is gaining the upper hand.

Trading recommendation:

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

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