HIGHLIGHTS:

GBPUSD: Builds Up On Recent Gains - Since resisting and holding above the 1.4137 level, its Feb 12’09 low on Thursday last week, the pair has been gaining nearer term momentum following through to the upside on Monday to close marginally higher at 1.4455...

USDJPY: Recaptures The 94.62 Level- Following a reversal of its Friday gains on Monday, USDJPY was seen retargeting its key resistance at the 94.62 level, its Jan’09 high in early morning trading today…

GBPUSD: Since resisting and holding above the 1.4137 level, its Feb 12’09 low on Thursday last week, the pair has been gaining nearer term momentum following through to the upside on Monday to close marginally higher at 1.4455.As long as the pair continues to trade above the 1.4137 level, a push higher towards its Feb 13’09 high at 1.4605 is expected with a loss of there opening the door for further upside towards its Jan 16’09/Feb 09’09 highs at 1.4981/86.A limitation of its upside gains is expected here thereby turning the pair lower again in line with its primary downtrend. Its nearer term upside is supported by its daily stochastics now trending higher.However,returning back to the 1.4237 level and eventually invalidating it will clear the way for declines towards its Jan’2002 low at 1.4045 with a turn below there setting the stage for a move towards the 1.3682 level, its Jun’2001 low and then its YTD low at 1.3504.All in all, although the pair’s overall bearish bias remains in place, corrective recovery is now in force.

USDJPY: Following a reversal of its Friday gains on Monday, USDJPY was seen retargeting its key resistance at the 94.62 level, its Jan’09 high in early morning trading today. Holding on to those gains on a daily closing basis today will open up further upside risk towards the 97.43 level, its Nov 24’08 high with a cut through there exposing the 100.55 level, its Nov 04’08 high. This development has also triggered the confirmation of its double bottom chart pattern putting the pattern's price objective at 102.22.Its daily and weekly RSI are both pointing higher suggesting further strength. On the contrary, its eroded resistance is now expected to reverse roles and provide support. Further down, the 92.41 level, its Feb 09’09 high will come in as the next support followed by the 91.30 level, its Jan 19’09 high and then the 89.71 level, its Feb 11’08 low. The ultimate level lies at its double bottom/ YTD low at 87.13.On the whole,USDJPY’s break of the 94.62 level has now increased risk of further upside gains with the next target residing at the 97.43 level.