HIGHLIGHTS:

GBPUSD: Hesitation With Downside Bias- Having failed to hold below its key support at the 1.4137 level, its Feb 12’09 low,GBP was seen closing higher on Wednesday reversing most of its earlier gains...

EURJPY: Recapture Of The 126.06 Level In Force - As recovery higher within its broader sideways range continues to be seen, a return back above its Feb 26’09 high at 126.09 is now envisaged..

GBPUSD: Having failed to hold below its key support at the 1.4137 level, its Feb 12’09 low,GBP was seen closing higher on Wednesday reversing most of its earlier gains. This suggests that the pair could be heading further higher towards its ST declining channel top presently at 1.4440 where a loss will extend further upside towards the 1.4662 level followed by its Jan 16’09/Feb 09’09 highs at 1.4981/86.Above there if seen will resume its recovery higher off the 1.3504 towards the 1.5374 level, marking its Jan 08’09 high. Downside target is initially located at the 1.4137 level before its Jan’2002 low at 1.4045 and then the 1.3682 level, its Jun’2001 low with the bigger support residing at its 2009 swing low at 1.3504.Overall,the pair still maintains its broader downtrend suggesting its current price action remains corrective of that trend.

EURJPY: As recovery higher within its broader sideways range continues to be seen, a return back above its Feb 26’09 high at 126.09 is now envisaged. Breaking and holding above there will bring upside gains towards the 127.66 level, its Jan 08’09 high followed by the 129.72 level, its Dec 29’09 high and finally its range top at 131.06.The latter level serves as its broader range top. Its daily studies are supportive of this view as they are trending higher. Downside targets are located at its Jan 19’09 high at 122.17 ahead of the 120.03 level, its Feb 09’09 high with a trade below there targeting the 117.61 level, its Dec 12’08.Other supports are positioned at its Dec 05’08 low at 115.88 where a loss should bring declines towards its YTD low at 112.09.On the whole, with its corrective declines halted at the 121.75 level, a likely recapture of the 126.09 level is now expected to trigger further upside gains.