FX.co ★ Elliott wave analysis of EUR/JPY for September 3, 2014

Today's support and resistance levels:

R3: 138.47

R2: 138.27

R1: 138.08

Current spot: 138.02

S1: 137.75

S2: 137.58

S3: 137.38

Technical summary:

We have seen a small break above important resistance at 138.00, which indicates that more upside will be seen after a small correction towards 137.38, from where the next strong rally higher towards 140.07 is expected. A clear break above resistance at 138.00 will also trigger the inverse S/H/S for the same target. In the longer term, I will be looking for a rally towards at least 143.79, but for now let's take this expected rally in small steps first.

Trading recommendation:

We are long in EUR from 137.35 and will keep our stop at 136.45 for now. If you are not long in EUR yet, then buy near 137.38 with the same stop at 136.45