Tuesday September 6, 2005 - 01:14:01 GMT
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FX-Strategy - www.fx-strategy.com
Forex: Daily Forecast for the U.S. Dollar vs Japanese Yen 6th September 2005 Price:
Resistance: 109.50 ... 109.85 ... 110.26 ... 110.74
Support....: 108.85 ... 108.61 ... 108.40 ... 108.13
Waiting for break of the 108.61-109.55 range for follow-through
Losses reached 108.75 and given this is within the 108.61-95 support range we may well have seen the low. However, given the nature of the decline we would prefer to wait for breaks higher to confirm further gains. We have seen 109.45 tested this morning and there is also resistance at 109.55-60 and only above this level would imply follow-through through congestion around 109.85 and to 110.26 at least. We tend to feel that once this breaks we should see a quick reversal to 110.74-92.
Losses reached the 108.61-95 support area where we have seen the decline stall. Indeed, this may have provided the low (at 108.74) but until 109.45-60 breaks we must be aware of the risk of losses back below 108.85-00 which would once again thoroughly test the 108.61 support. However, only break here would extend losses to the 108.13 area before recovering.
Elliott Wave Comments:
6th September 2005
We have seen price decline down to 108.75 which rests between the ideal daily 50% Wave (iv) retracement at 108.95 but above the 76.4% projected Wave v low (of Wave c) at 108.61. Thus it is possible that we have seen Wave c complete but require further strength to confirm this. At the most we feel the daily 58.6% retracement at 108.13 should hold and thus the emphasis really does seem higher now.
(c) FX-Strategy Inc 2005
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