Elliott wave analysis of EUR/JPY and EUR/NZD for January 6 - 2014

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EUR/JPY:

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 of 145.69. Short term we need a little more downside to end the five wave decline and I 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 maybe even 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 maybe even lower towards 140.80.

EUR/NZD:

Today's Support and Resistance Levels:

R3: 1.6548

R2: 1.6508

R1: 1.6461

Current Spot: 1.6447

S1: 1.6411

S2: 1.6366

S3: 1.6285

Technical Summary:

With the break below important support at 1.6443 we knew, that the expanding leading diagonal could not be the correct count. Therefore I have been forced to adopt a much more negative count. This count had wave C of an expanded flat correction ending at 1.6996 (wave B) and wave C lower is now developing. The target for this C wave is at 1.5794, where wave C will equal wave A in length.

Short term I will be looking for minor resistance at 1.6461 protecting the upside for a decline towards 1.6285 and likely even closer to 1.6230 before a correction towards 1.6461.