Today's Support and Resistance Levels:
S1: 98.08 R1: 98.63
S2: 97.95 R2: 99.02
S3: 97.80 R3: 99.18
Technical Overview:
Blue wave v and red wave 3 ended at 99.18, slightly below the ideal target of 99.42, and we are now in red wave 4 which should have a relatively short and shallow correction. Ideally we will see support in the 97.85 - 97.95 protecting the downside for a break above 99.02, which will confirm that red wave 5 is developing for a rally towards at least 99.62 and more likely to 100.61.
The short term risk is a break below support at 97.47 (the red dotted line), that would cause a change of the count. Under the Elliott Wave Principle, wave 4 is not allowed to break into the area of wave 1, which would be the case if we break below 97.47. A break below 97.47 will call for a decline towards the 96.73 - 97.03 area.
Trading Recommendation:
You should be long EUR against JPY from 95.85 with stop at 97.45 which will leave you with a profit of at least 190 pips no matter what outcome will be. If you are not long EUR already, you could buy at 98.00 with the same stop and take half profit at 99.55.
