Today's Support and Resistance levels:
R3: 144.40
R2: 143.79
R1: 143.62
Current spot: 143.27
S1: 142.90
S2: 142.61
S3: 142.35
Technical summary:
The unexpected break above 142.60 has prolonged the corrective cycle and we could possibly see a test of 143.62 and maybe even closer to the 100% retracement target at 143.79, but we can not break above resistance at 143.79 as that would invalidate the above count and the alternate count will take over. That said, we still expect resistance at 143.62 and as the last defense resistance at 143.79 to protect the upside for a break below support at 143.21 and more importantly a break below support at 142.90 that will be the first good indication that the correction from 139.96 has ended. However, to confirm that wave iii is developing a break below 142.35 and more importantly a break below support at 141.79 is needed.
Only a break above resistance at 143.79 invalidates the bearish count and calls for a continuation back to 145.69 in a flat correction.
Trading recommendation:
Stay short from 142.35 with your stop at 143.80. If you are not short in EUR yet, then sell after a break below 142.90 with the same stop at 143.80.
The material has been provided by InstaForex Company - www.instaforex.com
For detail explanation and best discovery on market trends you may visit via Elliott wave analysis of EUR/JPY for April 2, 2014 . Thanks for your support on Elliott wave analysis of EUR/JPY for April 2, 2014
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