Today's Support and Resistance Levels:
R3: 140.40
R2: 140.15
R1: 139.94
Current Spot: 139.72
S1: 139.39
S2: 139.04
S3: 138.43
Technical summary:
As we expected the extended blue wave ii correction had ended and blue wave iii lower towards 136.15 is developing. Blue wave ii ended at 141.26 and following decline is clearly impulsive in its structure. As we have entered the most powerful part of this decline, we should expect corrections to be small or even sub-normal, therefore we expect minor resistance at 139.94 will protect the upside for the next decline towards 137.69 on the way lower towards 136.15.
Longer term we are looking for a major correction to the five way rally from 94.10 to 145.69 (please see the chart below). The ideal target for this correction will be at 126.03, which is right in the middle of wave four of one lessor degree.
Trading recommendation:
Stay short EUR from 141.85 and move your stop lower to 141.30. If you are not short EUR yet, then sell near 139.94 with the same stop at 141.30.
The material has been provided by InstaForex Company - www.instaforex.comFor detail explanation and best discovery on market trends you may visit via Elliott Wave Analysis of EUR/JPY for January 30, 2014 . Thanks for your support on Elliott Wave Analysis of EUR/JPY for January 30, 2014
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