Monday December 17, 2007 - 04:25:19 GMT
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Daily Analysis for USDJPY
||While 113.05 holds there is risk to 114.22-27 else expect a drop to 112.49|
||Support at 112.30 held well and has seen gains extend into the 113.50-74 area. With a bearish divergence having developed we have to be a little cautious. If I have any preference then it is for 113.04 to support for a move higher into the 113.50-74 area and now I suspect a little higher to 114.22-27 but here Iâ€™d expect a correction lower. Next resistance is at 114.45 and then not until 115.08. |
||The break above 112.13 came as a surprise but only through the 112.77 resistance would mean direct gains, initially to 113.32. Above there would extend further to 115.40 eventually. (13th December)|
||Good progress higher and while I do prefer a bullish stance there is a tight stop here at 113.04. If this breaks then the risk is for a slightly deeper correction that should quickly move down to the 112.49 area but Iâ€™d expect this to hold for additional gains. Thus only below 112.27-40 would trigger stronger losses back to 111.40-65 and probably lower. |
||I think we should watch for the moment until a stronger bearish signal develops. Below 112.40 would assist and then suggest a deeper correction at least back to 110.46-80. (17th December)|
ELLIOTT WAVE COMMENTS
We are approaching the possible expanded flat target at 112.77. If this holds then a move back to the 110.30-46 area is the most we should expect.
However, given the quite positive momentum any break above 112.77-81 would appear to imply extension to a wave equality target in Wave (c) at 115.40.
It certainly looks as if the 110.46 low was Wave (b) to provide a wave equality target at 115.40. However, as an alternative watch the possibility of a move higher in Wave c of Wave iii where Wave iii has a 138.2% projection at 115.08.
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