31.10.201415:54 Forex Analysis & Reviews: Elliott wave analysis of EUR/JPY for October 31 - 2014

Today's support and resistance levels:

R3: 141.22

R2: 140.20

R1: 139.70

Current spot: 13939

S1: 139.10

S2: 138.82

S3: 138.40

Technical summary:

BOJ unexpectedly announced its decision to expand the stimulus with additional 80 trillion JPY, which has propelled the JPY higher. Now, the rally from the 134.14 low is having all signs of an impulsive rally. We expect resistance at 141.22 to be broken to confirm that an important bottom is in place at 134.14. However, if resistance at 141.22 is broken, then the entire correction from the 145.69 high must be regarded as being over and a new impulsive rally higher to 186.04 as the next long-term upside target. For now, we expect support near 139.10, which ideally will protect the downside to test important resistance at 141.22, but only above here, will call for more upside in a longer term.

Trading recommendation:

Our stop at 138.10 was hit for a little loss. We will await stronger clues, whether the correction from 145.69 finally comes to and end at 134.14