FX.co ★ Elliott Wave analysis of EUR/JPY for August 21, 2013

Today's Support and Resistance levels:

R3: 132.07

R2: 131.55

R1: 131.01 - Invalidation point of the bearish count

Current spot: 130.75

S1: 130.52

S2: 130.33

S3: 129.90

Technical summary:

We are still looking for an impulsive decline to develop any time now. In the short term we are looking for important resistance at 131.01 to protect the upside for a break below 130.33 and, more importantly, a break below 129.90, which confirms a continuation lower towards 128.17 and maybe even low. However, a break above important support at 131.01 will invalidate our bearish count and call for a rally higher towards 132.00 and make the triangle count our preferred count.

Trading recommendation:

Sell EUR here at 130.75 with a low risk stop at 131.05.