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27.09.2013 08:48 AM
Elliott Wave Analysis of EUR/JPY for September 27, 2013

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Today's Support and Resistance levels:

R3: 134.71

R2: 134.00

R1: 133.58

Current Spot: 133.19

S1: 132.88

S2: 132.68

S3: 132.27

Technical Summary:

As we broke back below the neckline of the inverted S/H/S bottom, that was, of couse, invalidated and caused a deeper decline. However, the short-term count with the highest odds shows a possible new and even bigger inverted S/H/S bottom building (see the 15-minute chart below). To trigger this bottom, we need a break above 133.58 and more importantly a break above 134.00, which will call for a rally higher towards 135.32 on the way higher to 137.45.

The risk to the above scenario is a break below 132.88, that will shift the odds towards the expanding leading diagonal we mentioned a few days ago. If this count becomes the preferred count we are only in wave ii and should see a deeper correction towards 132.11 and, maybe, even lower towards 131.43, before wave ii is over.

Trading recommendation:

Stay long in EUR from 133.60 with stop at 132.85. If you are not long in EUR yet, then buy upon a break above 133.58 with the same stop at 132.85.

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Summary
Urgency
Analytic
Torben Melsted
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