HIGHLIGHTS:

-EURUSD: Corrective Pullback Threatens The 1.3386 Level- EUR closed sharply lower Tuesday following its failure to hold above its daily 200 ema currently at 1.3635... Learn more

-USDJPY: Sustaining Its Reversal Gains Off The 93.55 Level- The pair maintained its third consecutive week of upside gains Tuesday trading higher intra day above its daily 200 ema before pulling back to close the session at 97.74...Learn more

EURUSD: EUR closed sharply lower Tuesday following its failure to hold above its daily 200 ema currently at 1.3635.With its short term upmove triggered off the 1.2456 level, its Mar 04’09 low now on hold, risks are presently seen towards the 1.3386 level, its Jan 19’09 high with a snap below there shifting focus to its strong support residing at the 1.3330 level, its Jan 27’09 high/former range top. This level is expected to reverse roles and provide support thereby turning the pair higher again. Below there though not envisaged at this stage will invalidate our upside view and put attention on the 1.3093 level, its Feb 09’09 high and subsequently the 1.2992/1.3000 area, its Feb 23’09 high/psycho level. The daily RSI has turned lower below the overbought zone supporting this view. On the other hand, the 1.3635 level followed by the 1.3736 level, its Mar 23’09 high will have to be decisively violated to reverse the present nearer term downside threats and bring gains towards the 1.3799 level, its Jan 08’09 high. Thereafter, a break above this target will open the door for an extension of further upmove towards the 1.3857/88 levels,its.618 Ret(1.4719-1.2330 declines)/Sept 11’08 high. On the whole, while its ST uptrend still holds, EUR is now facing nearer term corrective downside risk.

EUR/USD chart

USDJPY: The pair maintained its third consecutive week of upside gains Tuesday trading higher intra day above its daily 200 ema before pulling back to close the session at 97.74.However,despite being unable to close above its 200 daily ema,risk still remains to the upside with the 98.97 level and the 99.68 level, its Mar 05’09 high being targeted with a breach of the latter resuming its short term recovery activated at the 87.13 area towards towards its psycho level/Nov 04’08 high at 100.00/55. Both the daily RSI and Stochastics continue to advance and point towards higher prices .On the downside, objectives are located at the 96.58 level, its Mar 06’09 ahead of its Mar 12’09 low at 95.67. If that level is taken out, in any case, USDJPY would be set up for a dip towards the 94.62 level ,its Jan’09 high and next the 93.55 level, its Mar 19’09 low. On the whole, as long as its current reversal off the 93.55 maintains above the 94.62 level, we retain our short term upside bias.

USDJPY chart