18.08.201411:13 Forex Analysis & Reviews: Elliott wave analysis of EUR/JPY for August 18, 2014

Long-term review

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Today's support and resistance levels:

R3: 137.42

R2: 137.36

R1: 137.28

Current spot: 137.14

S1: 136.95

S2: 136.75

S3: 136.60

Technical summary:

Wave iv spiked higher than the expected 137.34 (the high came in at 137.61), but most importantly resistance at 137.70 held firm. Now, we should see the final decline towards the ideal target at 134.34. The decline from 137.61 is in five waves. In the short term, we should see resistance in the 137.36 - 137.42 area protecting the upside for a break below support at 136.95. It confirms the next decline towards 135.05 before a flat or tiangle consolidation and then the final decline to 134.34 to end wave C.

Trading recommendation:

We are short in EUR from 137.30 with stop placed at 137.75. If you are not short in EUR yet, then sell near 137.36 with the same stop at 137.75.

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