Tuesday January 8, 2008 - 03:17:04 GMT
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Daily Analysis for EURJPY
||Mixed â€“ waiting for breaks though I still have a sneaky feeling we shall see recovery|
||We did see a small breach of 160.80 but found a high at 160.94 from where there has been a deep decline. I still cautiously prefer to call this a correction. However, to confirm further upside we shall need to see a move through yesterdayâ€™s peak at 160.94 and if seen it should provide positive momentum for 161.72-98 around where Iâ€™d expect a correction. Next resistance is at 162.42 and then 162.88-163.18. |
||The upside is under risk of drying up with yesterdayâ€™s low the only remaining possibility we can see gains within a triangle back to 163.47 initially and probably to the 164.65-165.05 area. (4th January)|
||While we saw a much deeper than anticipated move lower this still didnâ€™t manage to break below the critical 159.73 low. There is still no confirmation of stronger gains and thus be aware of the continuing risk of a sharper move lower. Back below 159.90-160.10 would heighten this and would more than likely force a breach of 159.73 and thus additional losses down to 158.96 and possibly the 158.47-67 area. |
||Breach of 160.50 has provided losses that stalled at 159.73. This is an important support and if we are to see further losses then it needs to break. If seen it will imply a 158.47-68 initial target. (4th January)|
ELLIOTT WAVE COMMENTS
The rather strange potential for a daily triangle with the most extreme support at 159.73 has been highlighted overnight with the test of the 76.4% projection.
This leaves us with a small ambiguity until we see important areas broken. Clearly below 159.72 would extend losses to the 158.67 low and possibly the wave equality target at 158.47. This may well hold on first test.
Any earlier recovery above 162.82 area would imply a minimum rally to a small inverse head & shoulders target at 163.47 and probably to the 61.8%-66.7% projection in Wave ^d at 164.65-165.05.
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