Wednesday January 16, 2008 - 05:18:45 GMT
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Daily Analysis for EURJPY
||Take care at 157.28-55 â€“ only below sees further aggressive losses to 155.80 and 155.27|
||As warned we have seen stronger losses that have reached the 157.55-80 area. There is no bullish divergence but we cannot rule out a correction. For this to develop we shall need to see the 157.28-55 area support. A move back above 158.56-70 would provide some relief. If seen then we should see the upside move through to 159.09 and probably 159.38. However, for now I think this would be the most we see. Next resistance is at 159.97. |
||Yesterdayâ€™s losses donâ€™t really give much hope for the upside. Thus only back above 159.40 would provide stronger relief for 159.97 and 160.51. (16th January)|
||Breach of 160.34 was seen directly as suggested and losses then duly moved to the 157.55-83 area. Momentum does still look bearish though we cannot rule out a correction at this point. Thus take the next leg lower a little more carefully. We need breach of 157.28-55 to trigger what should be a strong decline once again. This would move below 156.93 and down to 156.28 en route 155.80 minimum and at most 155.27. |
||The first leg lower to 157.55-83 has already been seen and if we see breach of 157.28 we could see additional losses to 155.27. By this point we should be requiring a correction. (16th January) |
ELLIOTT WAVE COMMENTS
I have run out of patience with the upside and this now looks pretty bearish. A 138.2% projection in Wave â€“iii- lies at 158.90 but this doesnâ€™t seem to give enough room for Wave â€“c- to develop and thus I feel a stronger decline to the 176.4% projection is more likely and this lies at 157.55.
This should be followed by Wave â€“iv- before additional losses.
We have seen losses to the 176.4% projection in Wave â€“iii- but the decline from the Wave â€“b- high doesnâ€™t really look complete and I suspect this could move to the 223.6% projection at 155.80 or the 238.2% projection at 155.27 where Wave â€“c- will have extended by 161.8%.
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