HIGHLIGHTS:

- EURUSD: Above 1.3330 Level Required To Relieve Downside Pressure -Although a one-day recovery saw EUR strengthening off the 1.3113 level, its Mar 30’09 low to close higher at 1.3281 on Tuesday, a build up on that upside with an eventual break and hold above the 1.3330 level, its Jan 27’09 high/range top is required to relieve its present nearer term pressure activated at the 1.3738 level.

- USDJPY: Wiping out Two-day Gains And Eyeing The 99.68 level & Beyond - Price action Tuesday saw the pair wiping out its two-day gains and threatening to retarget its the 99.68 level, its Mar 05’09 high before closing at 99.03.A.

EURUSD: Although a one-day recovery saw EUR strengthening off the 1.3113 level, its Mar 30’09 low to close higher at 1.3281 on Tuesday, a build up on that upside with an eventual break and hold above the 1.3330 level, its Jan 27’09 high/range top is required to relieve its present nearer term pressure activated at the 1.3738 level. If this scenario plays out, we should see an attack on the 1.3386 level, marking its Jan 19’09 high with a decisive cut through that level risking further upmove towards the 1.3419 level, its Mar 25’09 low and then the 1.3738 level, Mar 19’09 high. Alternatively, failing to climb back above the 1.3330 level will turn focus to the downside and put pressure on the 1.3113 level where a clean invalidation will drive the pair further lower towards the 1.3097/93 area, its Feb 09’09 high/.50 Ret(1.2456-1.3738 rally).The next two support levels if the latter is violated reside at the 1.2992/1.3000 area, its Feb 23’09 high/psycho level and its Mar 16’09 low at 1.2835.We see the risk of a retest of its strong support at the 1.2456 level,its Mar 04’09 low if the pair fails to break and maintain above the 1.3330 level. On the whole, having embarked on a corrective pullback off the 1.3738 level, EUR must now break and hold above the 1.3330 level to suggest that a return to that level is building up.

chart 1

USDJPY: Price action Tuesday saw the pair wiping out its two-day gains and threatening to retarget its the 99.68 level, its Mar 05’09 high before closing at 99.03.A build up on that upside should see the pair aiming at the 99.68 level and possibly invalidating that level to resume its short term uptrend initiated at the 87.13 area towards its psycho level/ Nov 04’08 high at 100.00/55 enroute to the 102.42 level, its Oct 20’09 high. The daily RSI remains bullish and continue to advance, therefore supporting the current rally.Conversely,nearby support lies at the 98.97 level, its Mar 17’09 high with a breach of there turning attention to the 95.67 level, its Mar 12’09 low followed by the 94.62,its Jan’09 high and then its Mar 19’09 low at 93.55.Odds of further upside gains now outweighs that of the downside especially now that the pair is now trading within its established rising channel. All in all, having taken back its two-day gains, USDJPY now looks to recapture the 99.68 and beyond.

chart 2