Tuesday February 12, 2008 - 04:06:22 GMT
Share This Story
FX-Strategy - www.fx-strategy.com
Daily Analysis for USDJPY
||While 106.65-70 holds the risk is still higher to 107.88 else expect a test of 105.69-88|
||Loss was seen of 106.65 but stalled at 106.33. The recovery seems too deep for the downside to resume and thus the upside does seem to have the edge. This will require the 106.65-70 area to support while a break above 107.15-20 will assist higher toward s107.46 at least. Take care here as if this peaks we should continue to see sideways consolidation. Only above 107.46 would see a fuller test of the 107.81-88 highs once again but should hold on first test. |
||Recent trading has been messy but has remained above the 104.95 low as suggested and thus I remain cautiously bullish for 107.88, 108.60-96 and 109.74 at the very least. (4th February)|
||Losses fell between two stools but the recovery from 106.33 does appear quite deep for a bearish scenario. Thus be cautious on the downside and wait for a break below 106.65. If this occurs the downside will come under pressure again for a break of yesterdayâ€™s 106.33 low and for follow-through to 105.88 at least. This may hold. Only below extends to 105.37-69 again. |
||We are seeing the expected correction from the 104.95 target and this should last for a while. Selling opportunities should be considered around 109.80-110.11. Below 104.95 sees losses to 103.44. (25th January)|
ELLIOTT WAVE COMMENTS
Under the triangle scenario I called for a low around 106.65-75. This was broken but the recovery from 106.33 does look too deep for a Wave c lower in a flat correction.
This means we are setting up for a stronger move â€“ we just have to decide the direction. For the moment I have labeled yesterdayâ€™s low as Wave x. This should imply gains back to the 107.81-88 area in a new Wave a to be followed by a Wave b before we finally see breach of that resistance.
Overall targets in Wave B are at 109.80 (50%) and 110.35 (61.8%.)
If I am wrong then we could be seeing a deeper decline. This would be confirmed on a move below 106.33 and then 105.37-69.
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."