Tuesday March 6, 2007 - 05:12:10 GMT
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FX-Strategy - www.fx-strategy.com
Daily Analysis for EURJPYPrice:
Resistance: 152.97 ... 153.35 ... 153.66 ... 154.13
Support: 151.98 ... 151.67 ... 151.35 ... 150.98
A little mixed but feel the 152.97-153.35 area should be tested before pulling back
Losses stalled just above the 150.40-50 support, reversing from 150.74. It does suggest that we should continue to see the correction move up towards the 152.97-153.35 area which we feel should stall. While this recovery can continue we really need the 151.65-98 area to support. Next resistance is then found at 154.41 and 155.20-25.
There does seem to be risk to 152.97-153.35 but only above here would suggest the decline is complete and if so then look for the next leg to 155.20-25. (March 6th)
The decline reversed from 150.74 and we do expect the correction to move to the 152.97-153.35 area. We feel this will cap for further losses. Only an earlier break below 151.98 then 151.65-70 would imply direct losses which would push lower towards 150.98 and yesterdayâ€™s 150.74 low with the 150.40-50 stronger support below.
151.92 reached already and we feel the 151.76-92 area should cause a pullback. Thus only breach would extend the decline further towards 151.00 and possibly 150.40-50. (March 5th)
ELLIOTT WAVE COMMENTS
We have to accept the bullish stance is well and truly broken and we note a 138.2% projection in Wave (c) at 151.92 and an internal 76.4% projection in minor Wave v of Wave (c) at 151.76. Thus this area should hold for a correction back higher which should reach the 155.25-50 pivot area at least.
Only directly below 151.76 would extend Wave (c) to the 161.8% projection at 151.00 while we also note a daily pivot support around 150.40-50.
We need to decide whether the 150.74 low completed the decline and look at a possible 50%-58.6% retracement in a possible Wave iv at 152397-153.35 for guidance.
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