EURUSD: With its declining channel top providing resistance and turning the pair back down to close lower at 1.3228 after touching a high of 1.3385 on Thursday, risk remains lower as another attempt on the upside was seen failing in early morning trading today. Supports are located at 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) ahead of the 1.2991 level, its Feb 23’09 high with a clearance of the latter paving the way for a decline towards its Mar 16’09 low at 1.2833.Below there will open the door for further decline towards the 1.2456 level, its Mar 04’09 high enroute to its 2008 low at 1.2330. However, if a break and close above there(channel top) occurs, we could see its recovery continuation towards the 1.3443 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.On the whole, with the pair still holding within its declining channel, continuation of its weakness triggered at the 1.3738 level is likely.

Support/ Comments

1.3113 /Mar 30’09 low

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

1.2991/ Feb 23’09 high

Resistance/ Comments

1.3292 /Falling channel top

1.3443 /Daily 200 ema.

1.3580 /April 06’09 high

USDJPY: Continues To Strengthen.

USDJPY: A third-day of upside gains and a reversal of its previous week losses now look to occur as an early morning rally today saw the pair breaking back into its broken rising channel and approaching the 99.68 level, its Mar 05’09.Beyond there will call for further upside 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 bullish and trending higher suggesting further upside. Downside targets are 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. Onthe 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


99.68 /Mar 05’09

101.43 /April 06’09

102.42 /Oct 20’08 high