HIGHLIGHTS:

GBPUSD: Broader Bias Still Remains To The Downside- Although a recovery higher Wednesday saw the pair reverse its intra day losses to close at 1.3875,its broader bias remains to the downside...

USDJPY: Building Up To Recapture The 126.09 Level - As corrective pullbacks have faded, pressure has started building on its Feb 26’09 high at 126.09 which is a trigger for further upside gains towards the 127.66 level, its Jan 08’09 high...

GBPUSD: Although a recovery higher Wednesday saw the pair reverse its intra day losses to close at 1.3875,its broader bias remains to the downside. This view remains valid while GBP continues to trade below its Feb 02’09 low at 1.4052 and the 1.4137 level, its Feb 12’09 low and also maintains within its declining channel. In such a case, threats for further declines are seen towards its swing low at the 1.3504 level where a decisive violation will activate the resumption of its longer term downtrend towards the 1.2856 level, its Sept’85 low. On the other hand, building on its Wednesday recovery will mean risks for additional upmove towards its Feb 02’09 low at 1.4052 and the 1.4137 level, its Feb 12’09 low with a clean break though there propelling the pair higher towards the 1.4305 level, its Mar 06’09 high followed by the 1.4662 level, representing its Feb 23’09 high, We envisage the two earlier mentioned resistance levels should force the pair back down if tested. All in all, despite the price hesitation highlighted above,GBP retains its broader downside tone.

USDJPY: The pair sold off hard turning off higher prices and breaking back below the 97.43 level, its Nov 24’08 high on Wednesday. It was seen weakening through the 96.58 level, its Mar 06’09 low in early morning trading today with further downside risk now seen towards the 96.00 level, its psycho level and then the 94.62 level ,its Jan’09 high. With this price development,USDJPY has resumed its downside corrective pullback and halted its recovery triggered off the 87.13 level, its YTD swing low.However,on any recovery higher, its lost support at the 96.58 level is expected to reverse roles and provide resistance. Further out, supports are located the 97.43 level, its Nov 24’08 high and its psycho level/Nov 04’08 high at 100.00/55.A break and hold above there is required to push the pair towards the 102.22 level and then its Oct 14’08 high at 103.On the whole,USDJPY has now put its recent ST uptrend on hold and embarked on corrective pullbacks which is now threatening further downside pressure.