Eventual new highs in Dolar/Yen currency exchange

Related to forex signals in Dolar/Yen currency exchange at FXA, I bought on the March 24th close above the bearish from the 99.65 high (closed at 98.70), but the inability to accelerate higher (at least so far) is starting to raise the risk for more wide ranging before the new highs are seen. To compensate for this rising risk, would use a more aggressive stop on a close below the bullish trendline from mid March (currently at 96.60/70), but with the expectation of rebuying at lower levels if taken out. Support below there is seen at 96.00 (Monday’s spike low) and the bullish trendline from Jan (currently at 94.90/00).

Longer term, though another rally above the 99.65 is favored, it would be seen as the final upleg in the rally from the Jan low at 87.15 (wave 5), but also the final upleg in the whole correction from the Dec low at 87.15 (wave C of an “irregular” correction). Note that this type of correction breaks down to a series of 3 waves up (a-b-c from the Dec low), 3 waves down (a-b-c from the Jan 1t high at 94.60), and then a final 5 wave rally (from the Jan low), see numbering on a daily chart.

Related posts:

1. Is it usefull the Elliot Wave Principle in Forex?
2. The Ellioticians’ Way in the Foreign Trade

This entry was posted on Wednesday, April 1st, 2009 at 5:45 pm and is filed under Dolar, Yen. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.