Friday December 21, 2007 - 03:56:24 GMT
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Daily Analysis for USDJPY
||I still see the coming week as extending gains to 114.16 and later to 114.64-115.08 |
||A second â€śrecyclingâ€ť was seen lower again to 112.78 to keep the frustrating sideways consolidation intact. Keep in mind support at 112.49-73 though I feel it shouldnâ€™t be retested. To see gains develop we need a move above 113.58 which should spur a move to 114.16 at least. Care as this could cause a pullback. Above 114.20 extends to 114.64 minimum and probably 114.90-115.08. Next resistance is at 115.40.|
||We are getting closer to the daily cycle high and this may restrict the rally to 114.64-115.08. Only above 115.40 would signal a stronger follow-through to 117.67-93. (21st December)|
||The consolidation has developed what appears to be firm support at 112.73. However, do not forget the 112.49 support also. Thus only below 112.49 would suggest an earlier end to the rally and extend the downside to 111.40-45 (pivot) and the area close to the 110.46 corrective low. Further support at 109.64. |
||As we move closer to the New Year the upward daily cycles are waning. Thus watch out for a possible top around 114.64-08. An earlier move below 112.49 sees weakness to 109.64 & probably below. (21st December)|
ELLIOTT WAVE COMMENTS
Lack of upside is frustrating â€“ even if it is year-end. However, it does point to caution and the consideration of other, less bullish, scenarios.
There is an alternative count that would suggest a peak between 114.64-115.08 and there is still the alternative Wave (c) which has a wave equality target at 115.40.
Thus watch momentum which has been firm for signs of breaking down in this higher area. Cycles will soon turn lower for the month of January.
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