Thursday April 7, 2005 - 00:51:06 GMT
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Forex: Daily Forecast for the U.S. Dollar vs Japanese Yen 7th April 2005 Price:
Resistance: 108.88 ... 109.25 ... 109.57 ... 109.76
Support....: 108.40 ... 108.15 ... 107.85 ... 107.55
Cautiously while preferably 108.88 (should allow for 109.10-25) holds we look for losses to 107.10-34
Failure to break below the 107.80 support has led to a deep pullback. We still basically prefer a bearish stance and would like to see 108.88 continue to cap. However, we feel that allowance for a spike to 109.10-25 should be given. Thus a stronger bullish stance requires a break above 109.25 which would then allow follow-through to 109.57-76 at least. Further resistance lies at 110.20 & 110.76.
No break of the 107.76-80 support indicated yesterday with the pullback much deeper than anticipated. We continue to prefer a bearish stance but the depth of the pullback raises the risk of a spike to 109.10-25 first. Thus on a move above 109.00 or a break back below 108.15-40 we look for selling opportunities for a move below the hourly trend support at 107.50-60 and to the next support around 107.10-34. Further support is found at 106.62-87.
Elliott Wave Comments:
6th April 2005
Our target for the end of Wave -v- did not get reached but we feel that the 108.88 high should be the end of Wave [a] of Wave [iii] higher. Thus we can expect somewhere between 38.2% and 50% retracement in Wave [b] these levels being at 106.87 and 106.25 respectively. A level closer to the high end of this range would appear to fit in with projections of Wave [c] to end around the 112.00 area which represents a 161.8% projection in Wave [iii].
7th April 2005
The internal relationships of the move higher from 106.62 would allow a correction to the 107.80 area which is from where we saw price bounce yesterday. This being the case we need to accept the possibility of Wave -v- spiking up to 109.10-25 but would still then consider this the end of Wave [a] of Wave [iii] higher with the same implications as mentioned yesterday.
(c) FX-Strategy Inc 2005
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