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Anticipate Market Trends. Make More Profitable Trades. Get Daily Forex Research & Technical Analysis Trusted By Thousands of Traders.HIGHLIGHTS:
-GBPUSD: Risk Still Remains To The Upside - GBP was seen reversing its Friday losses on Monday closing at 1.4568 and suggesting potential for further upside gains with a retarget of the 1.4662 level, its Feb 23’09 high and above being next likely moves.
-EURJPY: : Breaks Out Of A Five-Month Range - The cross surged higher Tuesday breaking through its five months broader range top at 131.06 and its Oct 10’08 high at 132.23 to close higher at 132.44.
GBPUSD: GBP was seen reversing its Friday losses on Monday closing at 1.4568 and suggesting potential for further upside gains with a retarget of the 1.4662 level, its Feb 23’09 high and above being next likely moves. As evidenced in early trading today it was seen trading above the said level. This resistance level is key to the pair’s further upside as an eventual invalidation of there will pave the way for a run at its Jan 16’09/Feb 09’09 highs at 1.4981/86.Breaking and holding above this strong resistance level will resume the GBPUSD’s recovery initiated at the 1.3504 level towards the 1.5374 level, its Jan 08’09 high. We still believe our upside view should play out as long as the pair’s recent upmove off the 1.3655 level, its Mar 11’09 low is not reversed. Higher level momentum indicators are supportive of this view though the daily ones are bullish to overbought. However, failing to break and close above the 1.4662 level will mean a decline should shape up towards the 1.4378 level, its daily 50 ema followed by the 1.4305 level, marking its Mar 06’09 low with other supports located at the 1.3845 level, its Mar 18’09 low and the 1.3655 level its Mar 11’09 low. All in all, GBP requires a break and hold above the 1.4662 level to signal a retarget of the 1.4981/86 zone.
EURJPY: The cross surged higher Tuesday breaking through its five months broader range top at 131.06 and its Oct 10’08 high at 132.23 to close higher at 132.44.It was seen strengthening further in early morning trading today. The rectangle pattern break out price target stands at the 148.40 level, established by measuring the width of the range and projecting it from the break out point. With this new price development, EURJPY has put in a bottom at the 112.09 level and triggered a short term upmove initially towards its 200 ema currently at the 134.36 level with a cut through there extending further gains towards the 138.57 level, its Oct 20’08 high and then the 141.74 level, marking its Oct 14’09 high. The cross is supported by its weekly momentum though that of the daily timeframe is overbought which sometime occurs during range break outs. Pullbacks are now expected to be contained by its just eroded range top at 131.06 thereby turning the cross higher again. While we do not expect this level to give in, if it does our upside scenario will be invalided and a trade back into its range towards the 129.72 level, its Dec 29’09 high will follow with a loss of there putting the pair in position to even decline further targeting the 126.09 level, its Feb 26’09 high. On the whole, EURJPY is now poised to ascend further higher having resolved out of its broader sideways range to the upside.
