Thursday August 11, 2005 - 01:08:04 GMT
Share This Story
FX-Strategy - www.fx-strategy.com
Forex: Daily Forecast for the U.S. Dollar versus Japanese Yen 11th August 2005 Price:
Resistance: 110.73 ... 111.05 ... 111.30 ... 111.50
Support....: 110.28 ... 111.07 ... 109.85 ... 109.66
Mixed - waiting for breaks
Breach of 111.15-17 triggered follow-through to 110.36. We are mixed and wait for the next move. There is support around 110.28 and this should be watched for a possible reaction. If this breaks there is a greater chance of seeing the decline reach back down to 109.85 and possibly 109.66 and if seen we feel this provides a better buying opportunity. Any earlier break back above 111.07 would allow recovery to 111.30 at least and above there allows further gains to above 112.22. More likely there should be quite tight ranging again here.
Breach of 111.15-17 allowed losses to follow-through to 110.36. This is quite close to the 110.28 support and around here could possibly cause a reversal higher. Thus only below 110.28 would cause losses to extend to 110.07 at least and possibly the 109.85 low. Further support is at 109.66 which we feel should hold any losses on the day.
Elliott Wave Comments:
11th August 2005
Loss of 111.15 appears to have destroyed our expectation of either flat or expanded flat correction in this larger Wave (iv). The pattern now is a little unclear. We do note the chanc eof a triangle pattern from the 109.85 low which would imply a low around 110.28 (66.67% projection) to be followed by a move back to the 112.22-37 area. Alternatively (and not labeled) the correction from 109.85 could be occurring in a triangle. This would require a direct move higher.
The other possibility is a multiple ABC Wave (iv) and this could lead to losses to 109.66 in Wave (c) being 138.2% of Wave (a) and from where a Wave (x) should develop. (This would then imply the 112.86 high was the first Wave -x-.)
Thus with multiple alternatives we need to watch carefully over the next day or two to judge the correct pattern.
(c) FX-Strategy Inc 2005
Disclaimer: Pro Commentary, FX-Strategy, FX-Strategy Pro Charts, and any related products or services, are analytical tools only and are not intended to replace individual research. The information provided here should not be relied on as a substitute for extensive independent research before making your trading/investment decisions. FX-Strategy is merely providing this service for your general information. No representation is being made that any software or training will guarantee profits or not result in losses from trading. The views are not necessarily those of FX-Strategy, its owners, officers, agents or employees. In addition any projections or views of the market provided may not prove to be accurate. FX-Strategy will not be responsible for any losses incurred on investments made by readers and clients as a result of any information contained in this service. Be sure to closely read and understand the risks of foreign currency trading as described on the FX-Strategy website.
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."