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Yen Technical Outlook

Thursday, 26 June 2008 15:09:12 GMT

Written by Jamie Saettele, Technical Currency Analyst

Longer term, the advance from 95.72 is most likely corrective, but there appears to be additional upside potential over the next month or so.

The first leg of the correction (95.72-105.70) consists of overlapping waves and is the first wave of a 3 wave sequence.  The advance has formed a channel and the upper end of the channel is not until the 111/112 area.  Also, the wave from 102.58 would equal the 95.72-105.70 advance at 112.62.  Short term, a drop below 107.10 could lead to a test of the support line near 106.40 (reinforced by the 6/11 low at 106.56).  A break of that trendline would give us reason to get bearish this pair.

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