HIGHLIGHTS:

EURUSD: Testing The 1.2514 Level And Eyeing The 1.2330 Level- As the key support at the 1.2514 level, its Feb 18’09 low is being tested and is currently on the verge of being invalidated, attention is now shifting to the 1.2330 level, its 2008 swing low...

USDJPY: Closing In On The 100.55 Level And Beyond The pair reversed its two-day losses Tuesday and followed through higher in early morning trading to open up upside threat towards its strong resistance at its psycho level/Nov 04’08 high at 100.00/55..

EURUSD: As the key support at the 1.2514 level, its Feb 18’09 low is being tested and is currently on the verge of being invalidated, attention is now shifting to the 1.2330 level, its 2008 swing low. Eventually breaking and holding below the latter level will trigger the resumption of its medium term downtrend on hold since Oct’08 towards the 1.1860 level, its Mar’06 low and then its Nov’05 at 1.1640.Both its weekly and daily studies are in alignment with this view. To the topside, resistance levels are situated at its Jan 23’09/Feb 02’09 lows at 1.2706/66 ahead of the 1.2992 level, its Feb 23’09 high. Beyond there should leave the pair aiming at its Feb 04’09/Nov 25’08 highs at 1.3071/81 on the way to the 1.3298/1.3313 zone, its Jan 06’09 low/Oct 30’08 high. On the whole, we retain our overall bearishness for the pair but decisively invalidating the 1.2514 and the 1.2330 levels are required to trigger its medium term downside

USDJPY: The pair reversed its two-day losses Tuesday and followed through higher in early morning trading to open up upside threat towards its strong resistance at its psycho level/Nov 04’08 high at 100.00/55.Decisively penetrating and negating that zone will leave the 102.22 level, representing its double bottom break out price objective at risk of being targeted. Slightly higher lies another resistance at the 103.07 level, its Oct 14’08 high. While its short term uptrend triggered off the 87.13 level remains intact, the above mentioned resistance levels are likely to be tested and overcome. Downside objectives now start at the 97.43 level, its Nov 24’08 high ahead of the its psycho level at 96.00 followed by the 94.62 level, its Jan 06’09 high. Although the latter level is expected to turn USDJPY higher if seen, snapping below there will void its ST uptrend activated at the 87.13 level and bring lower prices. On the whole, with fresh offensives being launched after ending its nearer term correction at the 98.71 level, higher level prices are now expected with the 100.55 level coming in as the immediate target.