26.07.201210:31 Forex Analysis & Reviews: EUR/JPY - Elliott Wave Analysis for July 26 - 2012

Today's Support and Resistance Levels: 

S1: 94.87                      S1: 95.22

S2: 94.68                      S2: 95.73

S3: 94.40                      S3: 96.12

Technical Overview:
We still view the test of 94.09 as an important long term low. Not only for the decline from 101.62, but also for the decline from 111.43, which calls for a significant rally in the upcoming weeks and months and a return towards strong resistance in the 101.39 - 101.62 area as the first major target.
In short-term a break above minor resistance at 95.22 is required to add confidence to this view. A break above 95.22 should result in a strong and dynamic rally higher towards resistance 96.91.

Trading Recommendation:
You should be long EUR against JPY from 94.20 or at 94.85 with a stop at 93.50. Upon a break above 95.22 lift stop to 94.05. If you have not bought EUR already, then wait for a break above 95.22 (buy at 95.30) with a 94.05 stop.