Friday July 20, 2007 - 04:10:28 GMT
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Daily Analysis for EURJPY
Resistance: 168.80 ... 168.96 ... 169.34 ... 167.70
Support: 168.32 ... 168.05 ... 167.70 ... 167.55
Bias: While 168.30-35 supports the bullish structure for 169.34 and 169.70-77 remains intact
Daily Bullish: The break above 168.50 has been encouraging and while the 168.32 area continued to support in any pullback the structure will remain bullish. Note the trend support around 168.30. A move back above 168.80 would extend the upside to 169.34 and following a correction to 169.70-77 which should cap for a larger reversal.
MT Bullish: The wave structure is clouded but with the support line close below we really need a direct rally to see a move to the 169.70-77 target else we could see a larger correction lower. (July 19th)
Daily Bearish: While the bullish structure appears to have the upper hand I also note a major support line resting at 168.30-32. Any breach of this line would look quite bearish. If seen look for the downside to extend to 168.05-10 and probably to the 167.70 corrective low en route 167.10 and probably 166.63.
MT Bearish: The upside continues and this appears to target the 169.70-77 area from where I feel a larger decline can develop. Only an earlier move below 168.00-40 would suggest earlier losses to 167.80 and then 166.49. (July 13th)
ELLIOTT WAVE COMMENTS
The sideways correction still appears to be in a strange part of the wave structure. I still prefer the 169.70-77 target but we need price to remain above the support line from 161.49. This will require a break above 168.50 and 168.93 which should allow a test of the 76.4% projection in Wave â€“v- at 1169.70-77 which is also where Wave â€“c- will equal Wave â€“a-.
Any earlier dip below 167.70-90 â€“ below the trend support â€“ would appear to open the way for stronger losses that should quite quickly reach the prior Wave â€“b- at 164.22.
The support line is now around 168.30 and only below negates the rally to 169.70-77.
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