Wednesday February 27, 2008 - 05:40:50 GMT
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Daily Analysis for EURJPY
||I suspect a key high has been seen and thus expect losses to 159.50-60|
||The 161.41 target has been reached and with a bearish divergence in the hourly chart. One concern is this was not seen in the 4-hour chart. Thus only back above 160.70-80 would provide a further lift back towards 161.10 and then the 161.39 high. Further resistance is then seen at 161.82 and 162.36.|
||Price achieved the higher target at 161.41 and it is possible that we have seen a major peak. Therefore only back above there would risk 162.36 and possibly as high as 163.14 and 164.22. (27th February)|
||The 161.41 target was reached with a bearish divergence having formed. Thus we should look more at the downside. Initial support is around 160.31 and this may well hold the initial decline. Thus only breach would extend to the 160.00-10 area and possibly down to the 159.40-50 pivot support. Also note support at 158.90. |
||As we move above 158.95 we should watch for signs of exhaustion around 160.34-88 and max 161.30-41. Look for a bearish divergence to develop and if so we should see a reversal lower. (20th February)|
ELLIOTT WAVE COMMENTS
The upward momentum has taken price to the 61.8%-66.7% projection in minor Wave v between 160.34-54. A 76.4% projection lies at 161.41.
Wave equality in Wave â€“c- also lies at 161.41 so there is a strong argument to expect a test there.
Once this rally completes and with bearish divergences forming these could occur at any time we must be aware of the risk of a reversal lower.
The 161.41 target was achieved with a bearish divergence in the hourly chart. Cautiously look for losses to the Wave b of Wave v at 158.90 first.
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