Tuesday October 18, 2005 - 00:41:47 GMT
Share This Story
FX-Strategy - www.fx-strategy.com
Forex: Daily Forecast for the U.S. Dollar vs Japanese Yen 2005 Price:
Resistance: 115.40 ... 115.84 ... 116.20 ... 116.48
Support....: 114.88 ... 114.55 ... 114.25 ... 114.02
Breach this morning of 115.08 suggests further strength to 115.40 minimum and possibly 115.84
The reversal from 113.74 and break above 114.30-70 has provided follow-through that has tested (and marginally broken) the previous 115.08 high this morning. This tends to suggest further strength to be expected. This could see a direct move to the weekly pivot resistance at 115.40 but we would look for a pullback from there. Ultimately we feel the 115.84 target is achievable. Any earlier pullback should remain above 114.55-88.
The break back above 114.50-69 has caused a break down of the bearish view held yesterday and we feel that it would be safer to step back to look for better selling opportunities. There is resistance at 115.40 and this should provide a correction lower although we really don't see much below 114.75-90 at that point. Although we do not expect the test to be made today, any move to 115.84 should produce a good medium term selling opportunity.
Elliott Wave Comments:
18th October 2005
The failure to move lower yesterday appears to have caused our directly bearish scenario to break down. We have to say that the structure of the rally from the 108.75 low has become a little unclear. However, looking at the daily chart we do notice that a 261.8% projection in Wave [iii] lies at 115.84 with major pivot resistance in this area. Thus we feel that we should see a pullback from this area in Wave [iv] before we can move any further higher. Thus, for now, observe the reaction on any test of the 115.40-84 area.
(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."