HIGHLIGHTS:

EURJPY: Pressured To The Downside - EURJPY maintained a second week of downside losses the past week breaking its Oct 30’08 high at 131.06/range top and its psycho level at 130.00 to close the week lower at 129.35.

USDJPY: Trading Within Its Rising Channel - While an imminent threat of further weakness is now seen in USDJPY following the formation of an evening star candle pattern(top reversal signal) the past week, a follow through lower will be needed to confirm its(candle pattern) efficacy.

EURJPY - maintained a second week of downside losses the past week breaking its Oct 30’08 high at 131.06/range top and its psycho level at 130.00 to close the week lower at 129.35.This is coming on the back of a failure and its subsequent declines off the 137.42 level, its April 06’09 high. As momentum indicators and price action are both pointing lower ,vulnerability of the cross is seen towards its key support at its Mar 30'09 low at 126.41. Although above that level will keep EURJPY’s upmove triggered at the 112.09 level to the upside, if that level snaps, a chart damage will occur and focus will turn to the 122.12 level, marking its Mar 12’09 low. To the topside, its psycho level at 130.00 and its Oct 30’08 high at 131.06/range top will be aimed at on any recovery from its present price with a breach of there bringing further upside gains towards the 134.33/53 area, its Mar 24’09/April 13’09 highs enroute to the 137.42 level, represent its April 06’09 high. A break and close above there is required to trigger the resumption its short term uptrend now hold. On the whole, having declined for two weeks in a row, EURJPY is poised to head further lower.

USDJPY - While an imminent threat of further weakness is now seen in USDJPY following the formation of an evening star candle pattern(top reversal signal) the past week, a follow through lower will be needed to confirm its(candle pattern) efficacy. Our broader view remains to the upside while the pair continues to hold within its rising channel. Upside targeted are located at the 99.68 level, its Mar 05’09 high and the 100.55 level, its Nov 04’08 high with a turn above there allowing more strength towards its April 06'09 level at 101.45 where a loss will resume its upmove triggered off the 87.13 level towards the 102.42 level, its Oct 20’08 high followed by the 103.07 level, its Oct 14’08 high. On the downside, the 98.87 level, its Mar 26’09 high serves as the nearby support ahead of the 95.96 level, its Mar 30’09 and subsequently the 94.62,its Jan’09 high. On the whole, while USDJPY holds within its rising channel, its short term uptrend started at the 87.13 level remains to the upside.