Today's Support and Resistance Levels:
S1: 99.80 R1: 100.32
S2: 99.59 R2: 100.60
S3: 99.18 R3: 100.90
Technical Overview:
As we have broken clearly above resistance at 100.04, we have moved red wave 4 from the test of 97.88 on August 28 to the test of 97.98 on September 5. In overall it has not changed anything, but created a better fit to our preferred count. That means that red wave 4 instead of being a flat correction, was a double flat correction. We expected a shallow, but complex correction for red wave 4 and we indeed got that. However, we should now concentrate on red wave 5 as it drives to a close. Ideally, we will see the end of red wave 5 at 100.60 where red wave 5 will be 61.8% of the distance traveled from the bottom of red wave 1 to the top of red wave 3. The top of red wave 5 will also mark the top of black wave 3. Once red wave 5 and black wave 3 is in place, we should expect a correction in black wave 4 down to at least 98.40 and more likely 97.72, before we see the last rally in the impulsive rally from 94.09.
Trading Recommendation:
As we are close to a top, we will look for a possibility to sell EUR against JPY at 100.55 with a 100.90 stop and take profit at 97.90.
