Thursday November 8, 2007 - 05:36:31 GMT
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Daily Analysis for EURJPY
||Mixed â€“ waiting for breaks though the upside looks more likely|
||Losses were stronger than expected which implies the 167.63 high was the end of the first leg of the last rally in the weekly rally. The bounce from 163.97 is encouraging and I suspect we will see further gains develop. There is support at 164.84-93 which may well hold and from here a move higher back to 165.72-80 is then probable followed by extension to 166.23 and 166.72. Take care there in case we see extended sideways consolidation. Above targets the 167.63 high.|
||We have seen the larger correction occur directly and should have ended at 163.97. While a short term sideways consolidation is possible we should soon see gains through 167.72 for 175-177. (8th November)|
||The downside become more aggressive than expected yesterday but stalled just a few points below the 164.05 retracement support and this does appear to have completed the correction. There may still be risk of sideways consolidation but within that, while 165.50 caps there is risk of pullback. First support is at 164.84 and only below here would allow further slippage to 164.38-64 which again, should still hold. Only below 164.30 extends back to 163.97 and maximum 163.43.|
||Having seen the move down to 164.04 the downside now looks complete with only a small risk of seeing 163.20-43. Only breach sees stronger losses to 162.15 & below. (8th November)|
ELLIOTT WAVE COMMENTS
We have to be a little careful. I still feel that this morningâ€™s high was Wave a of Wave â€“v- and thus a 50% pullback to around 166.23-28 should then turn into a move higher to the 61.8% projection in Wave â€“v- at 169.15 â€“ ie around the 168.93 high.
The only risk is that we have seen a stunted Wave â€“v- which would then suggest this was Wave (a) of Wave (v) and thus we should see a deeper Wave (b) back 50% towards 164.04 before higher.
The 163.97 low appears to have completed Wave (b) and thus we can look for Wave (c) higher which should move 161.8% at least to 175.57 and possibly 176.4% to 176.62 to complete the rally.
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