Elliott Wave analysis of EUR/JPY for January 6, 2014

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Today's Support and Resistance Levels:

R3: 142.36

R2: 142.03

R1: 141.83

Current Spot: 141.65

S1: 141.24

S2: 140.80

S3: 140.36

Technical Summary:

We now have a clear five wave decline from the high 145.69. Short-term we need a little more downside to end the five wave decline and we will be looking for a continuation lower towards 141.24 and likely closer to 140.80 before this first five wave decline come to an end. Once a low is in place we should be looking for a correction towards 142.67 and may be even to 143.82 before the next powerful decline.

Short-term look for minor resistance at 141.83 protecting the upside for the final decline towards 141.24 and may be even lower towards 140.80.

Trading Recommendation:

There was no room for a correction towards 143.15. We will buy EUR at 140.95 with a stop at 140.25.