Monday December 10, 2007 - 04:00:11 GMT
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Daily Analysis for EURJPY
||Mixed â€“ waiting for breaks|
||Indeed we saw a test of 163.85 again and this has caused a pullback. If we are to see direct recovery then Iâ€™d like to think the 163.17 low seen thus far should support - or with only a few points slippage. We then need a move back above the 163.48 corrective high to provide a lift for the 163.87 peak and probably follow-through to 164.16 at least. Take care there although I feel the risk then would be for follow-through to 164.67-99 but this should provide a pullback. Next resistance is at 165.39. |
||It has been encouraging to see gains but we still need these to move above 163.20 and then 163.85 to extend to 164.97 at least. This would be the last barrier ahead of a return to the 167.63-72 peaks. (5th December)|
||The old high at 163.85 capped but the correction from there has been shallow so far. The close support is a little unclear but the 163.10-17 area should support while direct gains can be seen. Breach would imply a deeper correction to 162.84 minimum and possibly 162.52. However, this area should allow the upside to develop once again. Thus only a clean break of 162.35-52 would cause sharper losses to 162.02 and 161.50-60 again. |
||The direct gains make the downside less clear and we now need a move below 162.35 to cause the structure to weaken. Watch then for 161.50-60 and then the 160.89 low. (10th December)|
ELLIOTT WAVE COMMENTS
The move above 163.26 found a peak at the 163.85 high and seems to work more with a bullish structure in which 163.85 was Wave (a) of Wave (iii) and 160.89 was Wave (b).
Thus we need the 162.35-52 area to support at most to retain this bullish structure which would then imply gains to the 138.2% projection in Wave (iii) at 167.11.
Any earlier dip back below 162.35 could mean a flat Wave (b) and thus a return to the 160.89 area again and then weâ€™ll review.
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