Elliott wave analysis of EUR/JPY and EUR/NZD for Janaury 29 - 2014

EUR/JPY

Today's Support and Resistance Levels:

R3: 142.42

R2: 141.80

R1: 141.36

Current Spot: 141.16

S1: 140.77

S2: 140.29

S3: 139.79

Technical Summary:

The correction from 139.15 has extended as it has turned into a triple zig-zag correction, but we should be very close to the end of the correction. Expect the correction (blue wave ii) to end near 141.36. To indicate that the correction is over, we need a break below minor support at 140.77 and more importantly a break below 140.29 that confirms that blue wave ii is over and blue wave iii lower is developing for a decline towards at least 136.15.

Longer term I'm looking for a much deeper correction, but we will have to remember, that correction can be rather unpredictable as they evolve.

EUR/NZD

Today's Support and Resistance Levels:

R3: 1.6632

R2: 1.6568

R1: 1.6524

Current Spot: 1.6504

S1: 1.6452

S2: 1.6434

S3: 1.6385

Technical Summary:

It finally looks as red wave iv has ended slightly below my ideal target at 1.6463 (the low has been at 1.6452). Short term look for a break above minor resistance at 1.6523 and more importantly a break above 1.6567 which confirms that red wave iv is over and red wave v is developing for a move higher towards 1.6792. 

Short term look for support at 1.6493, which ideally will hold for the break above 1.6523, but we could see a move slightly lower towards 1.6476 before the break above 1.6523. At no point can a break below 1.6452 be accepted as that will prolong the correction from 1.6690.