Supports and Resistances for August 17, 2007

Hi all,

Ha Ha...What a day yesterday!! Must have been a historic day with all the crosses seeing some huge historic falls yesterday. And there seems no sign of a let up. We have had a good retracement in all the crosses and they seem to be ready for the next fall down. Yesterday was a dream for all traders as all you had to do was short, wait for retracement, short again and so on and i am sure that many traders would have made atleast 600 pips yesterday. As for today, it remains to be seen whether the lows of Feb - March are broken by the crosses. The low for GJ at that time was around 221 and that would act as a huge huge support for the down move. When would this wild swinging end? Your guess is as good as mine. One of the most important lessons that the market teaches you is that you should not try to outguess the market. Just go with the trend and do what the market does and not what it plans to do. Below are the supports and resistances for the JPY crosses for today (though considering the fall yesterday, i do not know how valid these would be ..:-)) :-

USDJPY - Important support at 113.26. If that is broken, next support is at 112.55 which is a very strong support and the final major support is at 111.90. On the topside, the resistance is at 114.12 and then at 114.90.

EURJPY - Important support at 151.50. If that is broken, next support is at 150.93 and the final major support is at 149.90. On the topside, the resistance is at 153.15 and then at 154.70.

GBPJPY - Important support at 222.80. If that is broken, next support is at 221.80 and the final major support is at 220.75.On the topside, the resistance is at 225.00 and then a major resistance at 226.68.

Happy Trading!!!