HIGHLIGHTS:

-EURUSD: Price Hesitation Seen At The 1.2992 /1.3000 Area - Although some form of hesitation are seen between the 1.2992/1.3000 Area, its Feb 23’09 high/psycho level, a convincing break and hold above there is still envisaged as that zone remains vulnerable.

-EURJPY: Focus Shifts To The 129.72 Level - Having violated the 126.09 level, its Feb 26’09 high and continued to trade higher, the cross is now expected to head further higher targeting the 129.72 level.

EURUSD: Although some form of hesitation are seen between the 1.2992/1.3000 Area, its Feb 23’09 high/psycho level, a convincing break and hold above there is still envisaged as that zone remains vulnerable. With that said, such a break if seen should drive the pair further higher towards the 1.3092 level, its Feb 09’09 high with a loss of there creating scope for additional upside gains towards the 1.3329 zone, its Jan 27’09 high where a cap is expected.However,if a failure at the above mentioned resistance zone occurs, weakness should trigger declines towards the 1.2821 level, its Mar 10’09 high ahead of the 1.2706/66 level, its Feb 02’09 low /Jan 23’09 low. A loss of the latter must occur for the pair to try and recapture the 1.2514 level, its Feb 18’09 low and the 1.2456 level, its Mar 04’09 low. Though previous attempts failed to forcefully take out those levels. Below there will aim at the 1.2330 level, its swing low from Oct’08.The pair is now overbought suggesting a pullback might be shaping up nearer term. On the whole, although hesitation is presently seen,EUR’s corrective recovery off the 1.2456 level still remains intact.

EURJPY: Having violated the 126.09 level, its Feb 26’09 high and continued to trade higher, the cross is now expected to head further higher targeting the 129.72 level, its Dec 29’09 high where a breach should propel it further towards its range top at 131.06.The latter and the 112.09 level now hold the pair’s sideways trading range and as long as the present price gains are limited to these two key levels, meaningful directional moves are not likely. Downside objectives are seen at the 126.09 level, its Feb 26’09 high at first and then the its Jan 19’09 high at 122.17 followed by the 120.03 level, its Feb 09’09 high. Its daily stochastics is heading higher supporting this scenario though in overbought zone.Overall,nearer term bias remains to the upside despite the fact that it is occurring within its broader sideways range.