» Pro Commentary Lite … 9th May 2008 … EURJPY

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European Morning Update 9th May 2008 »

Pro Commentary Lite … 9th May 2008 … EURJPY

An excerpt from Pro Commentary

 Price:                             159.73

Resistance: 160.05 160.31 160.51 160.77
Support: 159.54 159.36 159.04 158.70

Hourly chart with indicators

Bias: I suspect that while 160.51-77 caps we should see additional losses to 158.23-47

Daily Bullish: Losses stalled just below the 159.23 support and I’ll err on the side of the current sideways consolidation being just a correction that should remain below 160.51-77. Thus any stronger bullish stance will need a break of this area and if seen it would trigger stronger gains to 161.40-50 at least. Take care here as this could force additional losses. Only above sees the 162.00 area which should cap for a correction at the very least. Next resistance is then found at 162.70-07.
MT Bullish: 8th May: The downside still has further to go and only an earlier break above 160.80 and 161.20 would cause an earlier and deeper correction.  
Daily Bearish: Losses reached 159.23 and just below to 159.04. I suspect we are still seeing part of a decline that should remain below 160.51-77 and on a break below 159.36-54 should maintain the downside for a retest at 159.04 which should generate a small correction ahead of losses that would then target the 158.23-47 area from where I expect a stronger pullback. Further support is seen at 157.69 and stronger at 157.03.   
MT Bearish: 6th May: While 163.09 caps the downside can begin again and imply a return to the 160.59 area which should hold on first test but then be followed by losses down to 159.25 minimum and probably 158.47.

 

ELLIOTT WAVE COMMENTS

Elliott Wave Chart

8th May

We are at least seeing Wave –c- of Wave –iii- develop. A 223.6% projection in Wave –iii- is at 159.23 which is where Wave –c- will have projected by 138.2%. However, I suspect that we could see Wave –iii- reach the 261.8% projection at 158.45 where Wave –c- will have projected by 161.8%. From here we should look for a shallow Wave –iv-.

9th May

There is a chance we have seen the end of Wave –iii- at 159.04 but I’ll stick with the Wave –c- still  being in development and while this remains below 160.51-77 we should see test of the 158.47 target, possibly 158.23.

Ian Copsey

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