Today's Support and Resistance Levels:

S1: 97.80                      R1: 98.71

S2: 97.47                      R2: 99.18

S3: 96.83                      R3: 99.59

Technical Overview:  

Having failed to break above minor resistance at 98.83, red wave 4 has extended down to 97.88. However, the most important short term issue is that important support at 97.80 (the top of red wave 1) has not been broken. The Elliott Wave Principle only have three rules and one of them is that wave one and wave four can not overlap each other. If they do, we can not be in an impulsive rally, therefore, it is vital to our count that we does not see a break below 97.80 in red wave 4.

As long as important support at 97.80 has not been broken, we will look for a break above minor resistance at 98.71 for a rally towards 99.59 as the first possible target for red wave 5. At 99.59 red wave 5 will be 38.2% of the distance traveled from the bottom of red wave 1 to the top of red wave 3. If we break above 99.59, the next target will be near 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.

Trading Recommendation:

You should be long EUR against JPY from 95.85 with a stop at 97.75, leaving you with a profit of at least 190 pips no matter what happens. If you are not long EUR already, you can buy a break above 98.72 (buy at 98.80) with a stop at 97.75 and take half profit at 99.50 and the other half at 100.50.