Monday September 19, 2005 - 23:59:29 GMT
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FX-Strategy - www.fx-strategy.com
Forex: Daily Forecast for the U.S. Dollar vs Japanese Yen 20th September 2005 Price:
Resistance: 111.56 ... 111.78 ... 112.00 ... 112.25
Support....: 111.24 ... 110.90 ... 110.56 ... 110.30
Watch the 112.00-25 resistance which could stall the move higher for a return to 110.90
Infact we saw the rally continue higher but we are a little reluctant to get too bullish at this stage with resistance around the 112.00-25 area. A more direct bullish view will require a break here to allow the move to follow-through to 112.50-60 and probably the 113.06 target. Support at 110.90 should hold.
The gains seen yesterday appear to limit the downside. However, we feel the 112.00-25 area has potential to stall the uptrend temporarily and cause a pullback to 110.90 which we see a good support. Thus a stronger bearish view would require a breach of 110.90 in which case we would then look for a deeper pullback to 110.30 at least and possibly to retest 109.88.
Elliott Wave Comments:
19th September 2005
The move to 111.46 appears to confirm an expanded flat correction and thus we would expect a return to the 109.88 low with risk of a small overshoot to the 109.62 area. However, this will provide the low for Wave (ii) with strong bullish implications to 113.06.
20th September 2005
The expanded flat Wave (ii) did not materialize and thus we feel we are in the middle of Wave (iii) now. The 112.00-25 area looks like providing the peak for Wave (a) but while the 50% retracement at 110.90 supports we look for the rally to continue to the 138.2% Wave (iii) projection at 113.06.
(c) FX-Strategy Inc 2005
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