28.11.201209:06 Forex Analysis & Reviews: Elliott Wave Analysis on EUR/JPY for November 28, 2012

Today's Support and Resistance Levels:

S1: 105,71               R1: 106,07

S2: 105,53               R2: 106,57

S3: 105,06               R3: 106,96

Technical Overview:

The correction turned into a more complex correction, than we first anticipated. The failure to continue the rally higher does make us more alert for the possibility, that black wave i did not end at 106.58, but at 107.13, and therefore we are currently developing black wave ii. If this is the case, we will likely break below important support at 105.71 for a move closer to 105.53 and maybe even 104.53. However that will not be our preferred count before support at 105.71 is broken. Until then, our preferred count is that black wave iii already began at 105.71 and has built the first wave up (coloured blue) and we are currently in blue wave ii, which should terminate very soon for a break above 106.35 and more important 106.58 indicating that blue wave iii is under way higher towards 107.13 and 110.76 longer term.

Trading Recommendation:

You should be long EUR from 106.35 with a stop at 105.70 (blue wave ii is not allowed to break below the starting point of blue wave i, under the Elliott Wave Principle). If you are not long EUR, then wait for a break above 106.35 to buy with the same stop.