Monday July 2, 2007 - 04:53:32 GMT
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Daily Analysis for EURJPYPrice:
Resistance: 166.92 ... 167.37 ... 167.57 ... 167.86
Support: 166.40 ... 166.15 ... 165.90 ... 165.57
While 166.10-20 supports there could still be room for a break above 166.92
We have seen a move back to the 166.92 high and this could be part of a final move higher. There is support at 166.40 and again around 166.10-20 and this lower level needs to hold to retain a bullish structure. A recovery from the 166.10-20 area would help a recovery back to the 166.92 high with next resistance above there at 167.57, 167.86 and 168.27-52.
The upside is looking more directly possible but we need a move above 166.23. Once seen there should be a move to the 166.92 high and after that the 167.57-84 and 168.37-50 areas are highlighted. (June 29th)
The peak at 166.92 is expected to still mean a bullish structure, but we cannot rule out a flat correction and this would imply losses all the way back to 164.00-22. However, before getting too bearish we really need a break below 166.10-20 and if seen this would trigger follow-through down to 165.57 and probably 165.10-25 at least. Next support is then found at 164.85.
While the 166.92 high holds we must allow for a flat correction that would imply losses to 164.00-22 again though I feel the upside is stronger. Thus only breach of 164.00 would imply stronger losses. (July 2nd)
ELLIOTT WAVE COMMENTS
We have seen the 50% retracement hold at 164.20 and thus we need be aware of both bullish and bearish possibilities. The 165.94 peak seen this morning is a 61.8% correction and thus a move above here will help a more bullish picture for a return to the 76.4% retracement at 166.28 at least while above there raises the risk for a retest of the 166.92 high.
We now have the risk of a flat correction with a target back at 164.22. Otherwise we are seeing a final wave higher with targets at 167.86 and 168.52.
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