EUR/JPY Elliott Wave Analysis for August 21 - 2012
Today's Support and Resistance Levels:
S1: 97.73 R1: 98.18
S2: 97.47 R2: 98.38
S3: 97.43 R3: 99.42
We most likely have seen the end of the blue wave iv at 97.73 and expect a break above minor resistance at 98.40 soon for a move towards 99.42 in blue wave v and red wave 3. From 99.42 we expect red wave 4 to take over. As red wave 2 was a deep and simple correction, we should expect red wave 4 to be shallow and complex in its structure. That proves that there is a possibility that the entire rally since the 94.09 low is a leading diagonal, if this is the case, we will not see a break above 98.68, but instead we will see a break below support at 97.47. A break below support at 97.47 will call for a bigger correction towards the 95.35 - 95.75 area in wave 2 before the more dynamic and powerful wave 3 takes over towards 101.63.
You should be long EUR against JPY from 95.85 with a 97.45 stop.
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