Elliott Wave analysis of EUR/JPY for March 15, 2013
Today’s Support and Resistance levels:
S1: 124.83 R1: 125.25
S2: 124.49 R2: 125.78
S3: 124.05 R3: 126.32
It is most likely that wave ii of 5 ended at 124.05 and this support should not be broken at any time now. We are looking for a break above resistance at 125.78 as the confirmation that wave ii is indeed over and wave iii of 5 is developing for a rally higher to at least 130.72 and, more likely, we will see wave iii of 5 move even higher towards 134.58. At 134.58, wave iii will be 1.618 times longer than wave i. We are also looking for a very powerful rally in wave iii. Therefore, resistance should be broken without mush of a fight. Only a surprise break below 124.05 will delay the expected upside pressure for a move closer to 123.80 before the next upside rally can be expected.
We bought EUR at 124.65 and have placed our stop at 118.70, but we will move our stop higher to 123.75 upon a break above 125.78. If you are not long EUR already then buy at 124.85 or upon a break above 125.78 with the stops.
The material has been provided by InstaForex Company – www.instaforex.com