FX.co ★ Elliott wave analysis of EUR/JPY for August 14, 2014

Today's support and resistance levels:

R3: 137.52

R2: 137.34

R1: 137.18

Current spot: 137.13

S1: 136.85

S2: 136.75

S3: 136.60

Technical summary:

Wave iv ended just 4 small pips above our ideal target of 137.14 (the high came in at 137.18). Now, we are looking for a break below support at 136.85 to confirm that wave iv is over and lower wave v at 134.34 is developing. At 134.34, wave C will be equal in length to wave A. As we approch the ideal 134.34 target, we expect the minor swings to be more volatile.

Trading recommendation:

We sold EUR at 137.10 with our stop placed at 137.80. Upon a break below 136.85, we will move our stop lower to 137.20. If you are not short in EUR yet, then sell near 137.17 or upon a break below 136.85 with the same stops.