Elliott Wave Analysis of EUR/JPY for January 22, 2014 Trend News

Today's Support and Resistance levels:

R3: 141.77

R2: 141.49

R1: 141.29

Current spot: 141.25

S1: 140.92

S2: 140.60

S3: 140.32

Technical summary:

With the break below support at 141.34 we knew that red wave ii was in place at 141.85 (just below the ideal target at 141.92). In the short term we will be looking for resistance at 141.49 to protect the upside for a break below support at 140.92 which confirms a continuation lower towards 137.64 and perhaps even lower towards 136.65 as the powerful red wave iii extends lower.

In the longer term we are looking for a major correction towards 125.99.

Trading recommendation:

Stay short from 141.85 with your stop at 142.90 Move stop lower to 141.90 upon a break below 140.92. If you are not short EUR yet, then sell upon a break below 140.92 with stop at 141.90.

The material has been provided by InstaForex Company - www.instaforex.com



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