Monday March 26, 2007 - 05:16:06 GMT
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FX-Strategy - www.fx-strategy.com
Daily Analysis for EURJPYPrice:
Resistance: 156.57 ... 156.78 ... 157.02 ... 157.37
Support: 156.05 ... 155.83 ... 155.58 ... 155.14
Overall we are bearish but expect a correction from the 155.80-00 area
It looks like the 157.64 level produced the high we had been looking for and thus we are cautious about any bullish stance. However, we do note support in the 155.83-00 area and while this holds we feel a correction higher is possible. There is resistance at 156.78 and this may just hold. Above extends the upside to 157.00-05 and 157.30-35. The 157.82 resistance also remains valid.
We are seeing a move to the 157.77-82 target which we feel will cap. Thus only a clean break above here would extend to 158.65-86 at least and potentially the 159.61 peak. (March 22nd)
We have seen losses as preferred but we feel that we are close to a short term low. Internal relationships appear to highlight the 155.83 area although we should also be aware of 155.58 as a potential target. Thus a stronger bearish stance will require a break below 155.50 and if seen would extend losses down to 154.55-71 and possibly lower.
It looks like the 157.64 high produced the peak we had been looking for and this suggests a larger decline towards 151.70-152.15. (March 26th)
ELLIOTT WAVE COMMENTS
We look for a test of the 157.82 area and suspect his will be Wave ^b of a triangle and cause a reversal lower. Only above would raise the risk of a retest of 159.61 in a flat correction.
We now label the 157.64 peak as Wave ^b and thus we should see a decline in Wave ^c down to the 61.8%-66.67% projection between 151.70-152.15.
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