The term 'Observed Warily' can be broken down into two crossword solutions: 'EYED' and '4 letters'. The term 'EYED' means to look at something carefully or with suspicion, while the number '4 letters' indicates that the word is four letters long. Therefore, the term 'Observed Warily' can be interpreted as looking at something with caution or suspicion, which is often done when observing something unfamiliar or potentially dangerous.