HIGHLIGHTS:

GBPUSD:Outlook Remains Lower While Below Broken Channel -A follow-through lower on Friday gain was seen yesterday as GBP continues to trade below its broken rising channel and while that continues to occur, we see risk for further downside weakness.

USDJPY: Lower Level Prices Targeted -Having broken and maintained below the 97.78 level, its major emasand the 97.49 level, its rising channel base, USDJPY should continue to weaken in the nearer term.


GBPUSD

GBPUSD

GBPUSD:Outlook Remains Lower While Below Broken Channel.

GBPUSD: A follow-through lower on Friday gain was seen yesterday as GBP continues to trade below its broken rising channel and while that continues to occur, we see risk for further downside weakness. In such a case, its April 22’09 low at 1.4396 will be targeted ahead of the 1.4305 level, its Mar 06’09 high before the 1.4111 level, its Mar 30’09 high. Its daily RSI is now pointing lower suggesting further downside weakness. To the topside, initial resistance lies at the 1.4662 level, its Feb 23’09 high followed by its Jan 16’09/Feb 09’09 highs at 1.4981/86 with a cut through there bringing further price acceleration towards the 1.5066 level, its April 16’09 high. Above the latter will clear the way for the resumption of the pair’s recovery started at the 1.3655 level, its Mar 11’09 high. All in all, with a break and hold below its rising channel achieved, threats remain to the downside.


USDJPY

USDJPY

USDJPY: Lower Level Prices Targeted

USDJPY: Having broken and maintained below the 97.78 level, its major emasand the 97.49 level, its rising channel base, USDJPY should continue to weaken in the nearer term. Supports are located at the 95.95 level, its Mar 30’09 low and the 94.62,its Jan’09 high with a break below the latter setting the stage for more declines towards its Mar 19’09 low at 93.54. The daily momentum indicators are bearish and trending lower suggesting further downside weakness. Alternatively, if a corrective upside is triggered ,recovery should develop towards the 97.49/78 level where the pair should reverse roles and provide resistance. A push through there if seen should bring additional upside gains towards the 99.68 level, its Mar 05’09 and then the 101.43 level, its April 06’09 high with an eventual turn above the latter resuming its short term upside set off at the 87.13 level towards the 102.42 level, its Oct 20’08 high. On the whole, with its rising channel and major emaslost, nearer term weakness should target further downside.