FX Thoughts on EURJPY, USDCHF and GBPUSD

EUR-JPY @ 132.78/83...Support at 132.21

R: 132.98 / 134.30 / 134.97 S: 132.49-22 / 131.89 / 131.65-47

The Cross has fallen a little after having recorded a high of 133.60 on last trading day of 2009. Further upside is possible towards 135 over the next few days. But this, after some correction towards 131.50 is seen. There's immediate important Support at 8-DMA (132.21) and below that at 131.50. Till these Supports hold, we might see 135 by this week. The Projected Max High and Low for the day is at 134.30 and 131.65 respectively.

USD-CHF @ 1.0355/59...Significant Support in 1.0320-0280 region

R: 1.0380-90 / 1.0435 / 1.0480-1.0500 S: 1.0320 / 1.0280 / 1.0200-1.0180

The Support at 1.0290 mentioned earlier held very well and Swiss has risen as expected. Significant Support for this week is seen in 1.0320-1.0280 region. Remember the pair failed to see a strong break below this Support at 1.0280 in the couple of attempts made last week. This keeps up the chances of a rise once again towards 1.0480-0500 in the coming days on a strong break above the intermediate Resistance at 1.0435. Note that the projected Max-High for the day is 1.0434 (8-Month MA). Any sharp downmove is not looking likely now and we expect this Support at 1.0280 to hold during the day. However, a strong break below 1.0280 might pull it down towards 1.0200-1.0180.

GBP-USD @ 1.6094/97...Support at 1.6078-37

R: 1.6131-45 / 1.6259-66 / 1.6300-11 S: 1.6078-37 / 1.5991 / 1.5867

Cable fell after facing Resistance from the 21-DMA (1.6143). Last week, it surged beyond this Resistance on thin volumes and hence does not negate the bearish view on Cable. For today, a further decline is likely to be contained in the 1.6037-1.6078 region which houses the 8-, 13- and 200-DMA. Once below this, the 55-week MA (1.5660) will be the next target to watch for and assessed for a possible double top on the weekly. The Projected Max High and Low for the day is at 1.6259 and 1.5991 respectively.

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