Dollar / Yen Dip and Rip Adheres to Perfect Elliott Channel

DailyFX   |  February 24 2012 10:12 EST

The USDJPY dip from Wednesday’s high found support at Elliott channel support to the pip. The rip should find resistance from the same channel near 8100.

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Afternoon Technicals (all charts)

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Morning Notes:

EURUSD – An extension of the rally that began in January remains favored towards Fibonacci objectives near 13600. This level intersects channels in early March (middle of next week). Risk on any longs can be moved up to 13360.

GBPUSD – “The drop into 15644 may have completed wave B within the A-B-C rally from the January low. Objectives in the coming weeks are above 16000.” Already nearing the 15928 high, a break would expose objectives at 16075 (61.8% extension of wave A), 16165 (10/31/11 high) and 16340 (100% extension). Support is now 15780/15820.

Prepared by Jamie Saettele, CMT

AUDUSD – No change – “The turn higher in the AUDUSD increases confidence in the 4th wave interpretation. 10650/70 is near term support.” Objectives are above the free float high of 11079.

Prepared by Jamie Saettele, CMT

USDJPY – “The dip from Wednesday’s high found support at Elliott channel support to the pip in late US trading Thursday so expect a new high Friday as long as price is above Monday’s 7935 low. Resistance is round figure 8100 and the July 2011 high at 8147.” Watch the top of the channel for resistance.

Prepared by Jamie Saettele, CMT

--- Written by Jamie Saettele, CMT, Senior Technical Strategist for DailyFX.com

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