Wednesday January 17, 2007 - 03:46:10 GMT
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Daily Analysis for EURJPY
Resistance: 156.35 ... 156.58 ... 156.90 ... 157.31
Support: 156.00 ... 155.70 ... 155.48 ... 155.00
Only a clean break above 156.33-37 will extend gains more strongly
The support at 155.70 has held and caused follow-through close to the 156.33 high. Only a clean break above 156.37 would imply additional gains and if seen would extend the upside to 156.81 at least â€“ care should be taken here as this could cause a pullback. More likely we would see breach which would allow gains to follow-through to 156.94-00 at least and probably onwards towards 157.74 at least.
While the 153.66 level has held we still havenâ€™t seen a convincing break higher. We retain an overall bullish stance but may need to acknowledge risk of a sideways consolidation first. (January 16th)
Until the 156.33-37 level breaks we could still be seeing a complex sideways correction. However, we would prefer to wait for a break back below 156.00 and if seen it would highlight the risk of losses to 155.70 which could see a small reaction. Below would extend losses back to 155.00-07 once again but we feel this broad area should support.
Only below 154.55-68 and then 154.29 would cause a retest of the 153.66 low and would probably imply a stronger decline below here for 152.43 initially. (January 17th)
ELLIOTT WAVE COMMENTS
The peak at 156.33 still looks like a Wave I and now we need to watch how Wave ii develops â€“ and somehow we feel there is a little more to go before the upside in Wave iii continues.
We suspect a flat correction with a peak at 156.33-37 and then a move back to 155.00-07 I to complete Wave ii (from the Wave I peak at 156.33.) A direct break above 156.37 and then the 38.2% expansion at 156.81 would imply direct gains in Wave iii to the 138.2% projection at 158.75.
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