Elliott wave analysis of EUR/JPY and EUR/NZD for January 31 - 2014

EUR/JPY

Today's Support and Resistance Levels:

R3: 140.27

R2: 139.94

R1: 139.37

Current Spot: 138.96

S1: 138.65

S2: 138.18

S2: 137.39

Technical Summary:

I'm looking for the ongoing wave blue wave iii to start accelerating towards the downside soon. The ideal target for blue wave iii is at 136.15. Short term expect minor resistance at 139.37 to protect the upside for the next decline, but if the minor resistance is clearly broken we should expect a minor extension towards 139.94 before the next move lower towards 136.15.

A break below the support line of the base channel will confirm that the expected acceleration lower is developing.

EUR/NZD

Today's Support and Resistance Levels:

R3: 1.6792

R2: 1.6763

R1: 1.6677

Current Spot: 1.6625

S1: 1.6609

S2: 1.6592

S3: 1.6561

Technical Summary:

The expected correction from 1.6725 became slightly deeper than anticipated, but I'm now looking for support at 1.6592 to protect the downside for a break above minor resistance at 1.6677, which confirms the rally in red wave v towards 1.6792. Once red wave v and black wave iii is in place look for a shallow wave iv correction to 1.6579 before higher again in wave v.