EURUSD: Although tests of higher prices above the pair’s declining channel have been occurring, its inability to maintain those gains has kept its declining channel top() as resistance. And while this remains, pressure continues to point lower with the 1.3169 level, its daily 50 emaseen as the next downside target ahead of the 1.3113 level, its Mar 30’09 low and the 1.3097/93 area, its Feb 09’09 high/.50 Ret (1.2456-1.3738 rally).Below the latter level will indicate further declines towards the 1.2964 level, its April 28’09 high. Alternatively, convincingly breaking and holding above the mentioned channel top will generate more upside gains towards the 1.3435 level which is the location of its daily 200 emawith a break of there triggering further upside towards its April 06’09 high at 1.3580. Weekly/daily stochastics remains supportive of this view as they are both trending higher. Onthe whole, with the pair still holding within its declining channel, continuation of its weakness triggered at the 1.3738 level is likely.

Support /Comments

1.3169 Daily 50 ema

1.3113 Mar 30’09 low

1.3097/93 Feb 09’09 high/.50 Ret(1.2456-1.3738 rally)

Resistance/ Comments

1.3385 April 30’09 high

1.3435 Daily 200 ema.

1.3580 April 06’09 high

USDJPY: Back Into Its Rising Channel With Eyes On The 99.68 Level.

USDJPY: Having reversed its previous week gains the past week and returned back above its earlier broken rising channel, risk continues to build on the 99.68 level, its Mar 05’09.Beyond that level if seen should drive the pair further higher towards the 101.43 level, its April 06’09 high with an eventual turn above the latter resuming its short term upside set off at the 87.13 level towards the 102.42 level, its Oct 20’08 high. The daily stochastics and RSI are both positive and trending higher suggesting further upside gains. On the downside,target is initially seen at the 97.67 level where its daily 50 & 200 emasare located with a turn below there allowing the pair to head further lower towards the 95.95 level, its Mar 30’09 low and then the 94.62,its Jan’09 high. On the whole, with momentum continuing to be seen on the upside, further build up on its upmove from its hammer formation is likely.

Support /Comments

97.73/47 Daily ema/channel base

95.95 Mar 30’09 low

94.62 Jan’09 high

Resistance/ Comments

99.68 Mar 05’09

101.43 April 06’09

102.42 Oct 20’08 high