LONDON, July 12 - Following is a selection of comments from analysts on important technical developments in the foreign exchange market.
NICOLE ELLIOT, TECHNICAL STRATEGIST, IBJ
* EURO/DOLLAR: "A strong bullish move over the last four days appears to be running out of steam. Critical resistance between $0.8625 and $0.8700 is unlikely to yield this week, so allow for a pullback over the next few days. This is seen as a buying opportunity for a successful move higher next week. For today, while below $0.8625/$0.8642, expect a slow move down to $0.8530/$0.8500; below $0.8440 is unlikely. A sustained break above $0.8642 targets June's high at $0.8673 and possibly $0.8700/$0.8725. Note that a close above weekly trendline resistance at $0.8625 adds considerably to medium-term bullish pressure."
* EURO/YEN: "Yesterday's spike high against 108.00 yen coupled with today's break below 106.50 sends this market into retreat. This should trigger a messy pullback to 106.00 and possibly trendline support at 105.70. Allow for much work between here and 106.80 over the next two days. Below 105.70, while unlikely today, targets 105.00/104.50."
* DOLLAR/YEN: "A clear break of trendline support coupled with a strong down day means we have at last found an interim top. The question now is how far and how fast can prices move lower. First support at 123.66/123.30 should probably hold this week, setting up for consolidation between here and 125.00. Below 122.90 targets 120.85."