Elliott wave analysis of EUR/JPY for February 21, 2014

Today's Support and Resistance levels:

R3: 141.87

R2: 141.26

R1: 140.87

Current Spot: 140.60

S1: 140.20

S2: 139.99

S3: 139.80

Technical summary:

Important support at 138.95 protected the downside and has kept the correction from 136.23 alive and we should still be looking for a rally higher towards 142.26. In the short term we are likely to see resistance at 140.87 holding a minor correction towards 139.80 before the next rally higher towards the ideal target at 142.26. Once this correction is over we should see renewed downside pressure for a decline towards the 38.2% corrective target for the rally from the 94.10 low to the 145.69 high.

Trading recommendation:

Our stop at 139.95 was hit for a small loss. We will stay neutral and wait to sell EUR at 142.00.