USDJPY: Having reversed its recovery gains,USDJPY is now seen challenging its key support at the 94.55 level, its May 18’09 low. Ultimately invalidating that level will suggest further declines towards the 93.54 level, its Mar 19’09 low and then its Feb 09’09 high at 92.40. Its daily RSI continues to support this view. Supports are located at the 95.62 level, its April 28’09 low and the 96.69 level, its May 19’09 high followed by the 99.73 level, its May 07’09 high and then the 101.43 level, its April 06’09 high. On the whole, with the 94.55 level almost invalidated, risk continues to point to the downside

Support/ Comment

94.55 May 18’09 low

93.54 Mar 19’09 low

92.40 Feb 09’09 high

Resistance/ Comments

95.95 Mar 30’09 low

97.62 Daily 200 ema

99.73 May 07’09 high

EURUSD: Loss Of The 1.3720/38 Levels Triggers EUR’s Uptrend Resumption.

EURUSD: With a break and close above its key overhead resistance located the 1.3720/38 levels, Mar 04’09/May 13’09 highs seen on Wednesday, resumption of its short term uptrend off the 1.2456 level, its Mar 04’09 high has been triggered. This development now leaves the pair targeting higher prices towards its Jan 05’09 high at 1.3964.Beyond the latter will call for further strength towards the 1.4363 level, its Dec 29’08 high. Its daily/weekly studies have turned higher and are bullish suggesting further strength. On the contrary, correcting lower will suggest a move towards the 1.3720/38 levels initially with an invalidation of there paving the way for more lower prices towards the 1.3446 level which is the location of its 200 daily emaand then the 1.3385 level, its April 30’09 high ahead of the 1.3213 level, its May 04’09 low. We envisage its eroded resistance at 1.3720/38 zone to reverse roles and provide support. On the whole, having resumed its ST uptrend, the pair now looks to head further higher

Support/Comments

1.3446 Daily 200 ema

1.3385 April 30’09 high

1.3213 May 04’09 low

Resistance/Comments

1.3720/38 Mar 04’09/May 13’09 highs

1.3964 Jan 05’09 high

1.4363 Dec 29’08 high