Thursday December 20, 2007 - 03:10:56 GMT
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Daily Analysis for EURJPY
||Mixed â€“ waiting for breaks|
||If anything, the return to 162.29-33 does provide a small bias lower at the very least. If there is to be another rally then we need a move back above 163.17 to extend the move back to the 163.61 high, breach of which should keep the upside intact for 163.80 and possibly 164.15. Even then we need to take care as this could be part of a correction. Thus only cleanly above 164.20 would open the way for a retest of the 165.28 high and probably further. |
||We really need to see the 161.49-67 area hold any downward attempt while a rally back above 164.20 would imply strength back to 165.28 and then 166.50-99. (20th December)|
||Breach of the 163.00-10 support yesterday opened the trap doors for a return to the 162.29-33 low. If there is to be further downside, which I feel is probably required we need a break of yesterdayâ€™s low but then need to watch the reaction as price moves into the critical 161.67-87 support. Below 161.67 would open another trap door for 160.50-80. |
||Yesterdayâ€™s losses alter the picture entirely but Iâ€™d only look for direct losses on a break below 161.50. This would open up 160.45-89 followed by the 159.35 low and then 158.67. (12th December)|
ELLIOTT WAVE COMMENTS
Yesterdayâ€™s losses do raise the chance that weâ€™re seeing an expanded flat Wave (x) and this implies price remaining below 163.35-48 to allow a retest of the Wave efa at 161.87 and possibly a small extension to 161.49-67 where Wave (x) will have retraced by 58.6%-61.8%.
At this juncture we should watch carefully. The wave structure has been very uncertain and any loss of 161.49 would imply that the 165.28 high was actually a corrective high and would thus imply stronger losses back to the 158.67 low at least.
If it holds, then look for a final ABC pattern initially to the 165.28 high and probably later to 166.50-99.
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