USDJPY: USDJPY maintained its downside weakness on Wednesday breaking below its key support at the 95.62 level, its April 28’09 low and opening the door for further lower prices towards the 93.54 level, its Mar 19’09 low and then its Feb 09’09 high at 92.40. Its daily momentum indicators are positive and trending lower suggesting further downside. Recovery if seen should now target its eroded support turned resistance at 95.62. Further out, its major emasat 97.98 level comes in as resistance ahead of the 99.73 level, its May 07’09 high with a turn above there bringing further upside acceleration towards the 101.43 level, its April 06’09 high. Above the latter will resume its short term upside set off at the 87.13 level towards the 102.42 level, its Oct 20’08 high. On the whole, having halted its upmove, dangers remain to the downside.

Support/ Comments

94.62 Jan’09 high

93.54 Mar 19’09 low

92.40 Feb 09’09 high

Resistance/ Comments

95.95 Mar 30’09 low

97.73/47 Daily ema/channel base

99.68 Mar 05’09

GBPUSD:Corrective Pullbacks Shapes Up.

GBPUSD: As GBP traded lower Wednesday still maintaining its overbought condition, risk remains lower for that condition to be relieved. If this occurs, the 1.5068 level, representing its April 16’09 high and the 1.4836 level, its May 04 09 low will be targeted ahead of its April 27’09 low at 1.4517 level. Despite this downside scenario, we expect the 1.5068 level or even its ST rising trendline to provide support on such pullbacks thereby turning the pair higher again. To the topside, its strong resistance at the 1.5373 level, its Jan 08’09 high will be targeted ahead of the 1.5440 level where its 200 daily emais located. Above the 1.5440 level will set the stage for a move towards the 1.5724 level, its Dec 17’09 high. All in all, with the continuation of its recovery off the 1.3655 level triggered, GBP should accelerate further higher though now hesitating.

Support/Comments

1.5066 April 16’09 high

1.4836 May 04 09 low

1.4517 April 27’09 low

Resistance/Comments

1.5373 Jan 08’09 high

1.5722 Dec 17’08 high

1.6671 Oct 30,08 high