HIGHLIGHTS:

- GBPUSD: Run At The 1.4981/86 Zone Now On The Cards - After convincingly pushing through the 1.4662 level, its Feb 23’09 high and its Mar 24’09 high last week, GBP has now cleared the way for a recapture of its key resistance at its Jan 16’09/Feb 09’09 highs at 1.4981/86.

- EURJPY: Loss Of The 134.52 Level Clears The Way Further Upside Gains - EURJPY closed sharply higher last week maintaining its recovery off the 126.41 level, its Mar 30’09 low and breaking through its 2009 high at 134.52 to close higher at 135.26.

GBPUSD- After convincingly pushing through the 1.4662 level, its Feb 23’09 high and its Mar 24’09 high last week, GBP has now cleared the way for a recapture of its key resistance at its Jan 16’09/Feb 09’09 highs at 1.4981/86.This is coming on the back of a recovery off the 1.4111 level, its Mar 30’09 high. In order for the recovery started at the 1.3655 level, its Mar 11’09 to resume, the pair must break and hold above the 1.4981/86 region to bring further upside towards the 1.5374 level, its Jan 08’09 high and possibly higher. Weekly stochastics and RSI remain bullish as well, pointing towards further strength. To the downside, the 1.4778 level just eroded should now revert to support and provide a platform for further upside gains. Below there if seen should generate weakness targeting the 1.4662 level, its Feb 23’09 high ahead of the 1.4305 level, its Mar 06’09 high and then the 1.4111 level, its Mar 30’09 high. With the present price action, there is more evidence of likely upside gains than downside losses. All in all, GBP now looks to further its nearer term recovery activated at the 1.4111 level with its sight on the 1.4981/86 zone.

EURJPY- EURJPY closed sharply higher last week maintaining its recovery off the 126.41 level, its Mar 30’09 low and breaking through its 2009 high at 134.52 to close higher at 135.26.It was seen heading higher in early trading targeting the 138.55 level, its Oct 20’08 high with a clearance of there exposing the 141.74 level, its Oct 14’08 high. We believe that while the cross maintains above the 134.52 level or even the 131.06 level these target are achievable.Alternatively,if a pullback is triggered at the current price levels we expect the 134.52 level to initially contain such weakness but if a snap below there occurs, declines should build momentum towards 131.06 level, its range top ahead of the 129.72 level, its Dec 29’09 high and then the 127.65 level, representing its Mar 13’09 high. On the whole, with a hold above the 131.06 and 134.52 levels seen, further upside incursions are now favoured.