Tuesday December 19, 2006 - 05:38:15 GMT
Share This Story
FX-Strategy - www.fx-strategy.com
Daily Analysis for USDJPY
Resistance: 117.95 ... 118.32 ... 118.59 ... 118.82
Support: 117.69 ... 117.43 ... 117.22 ... 117.05
We continue to look for a cap in the 118.25-45 (max 118.63) area and a reversal lower
Daily Bullish: Yesterdayâ€™s comments continue to apply:
The 118.25-45 area has held perfectly and we still see resistance here and at 118.63 which cautiously we still feel will cap given the bearish divergences. Thus to cause a stronger move higher we shall need to see a break back above 118.63-80 and if seen it should extend the move higher to 119.08 and in time to the 119.65-87 highs.
The break higher came as a surprise but we are not about to get bullish just yet with cycles bearish into mid-January. More likely we will either see a peak at 117.78 or around 118.45-58 for a stronger decline. (December 14th)
Price edged lower but never really saw any strong break. On the whole we remain cautiously bearish and would like to see the 117.95-118.32 area continue to cap (ma x118.58-63) with loss of 117.69 and 117.43 triggering a strong move lower that should reach 116.85-117.05 minimum and possibly 116.45-50.
With the break higher we need to work out where the peak will be since cycles are bearish for around 3-5 weeks and should see new lows â€“ probably around 113.00-50. Watch 117.78 & 118.45-58. (December 14th)
ELLIOTT WAVE COMMENTS
It looks like the 118.25-58 area should cap and we will consider this as Wave B and therefore look for a decline in Wave C.
The wave structure approaching the 118.35 high on Friday looks correct in terms of what was expected and we see a bearish divergence having formed. Thus the preference is for a move back lower. The small congestion area around 116.50-00 area looks like the first stalling area and then we can decide whether this is the start of Wave C lower.
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."