HIGHLIGHTS:

GBPUSD: Eyes The 1.5440 Level And Beyond - Although another strong resistance lies at the 1.5373 level, its Jan 08’09 high, an invalidation of there is expected to activate a run at the 1.5440 level where its 200 daily emais located.

USDJPY: Risk Turns Towards To The 95.62 Level - As USDJPY followed through to the downside breaking back below its major emasto close lower at 97.40, risk of further downside weakness targeting its strong support at 95.62 level, its April 28’09 low is now shaping up.


GBPUSD

chart 1

GBPUSD: Eyes The 1.5440 Level And Beyond.

GBPUSD: Although another strong resistance lies at the 1.5373 level, its Jan 08’09 high, an invalidation of there is expected to activate a run at the 1.5440 level where its 200 daily emais located. Though this view is now tempered with a corrective decline on Monday, GBP remains biased to the upside while holding firmly above its rising trendline. Above the 1.5440 level will set the stage for a move towards the 1.5724 level, its Dec 17’09 high and possibly higher. Weekly studies are supportive of this view. On the other hand, supports are located at the 1.5068 level, representing its April 16’09 high and the 1.4836 level, its May 04 09 low and then its April 27’09 low at 1.4517 level. Despite this downside scenario, we expect the 1.5068 level to initially provide support on any pullback thereby turning the pair higher again. All in all, with the continuation of its recovery off the 1.3655 level triggered, GBP should accelerate further higher.


USDJPY

chart 2

USDJPY: Risk Turns Towards To The 95.62 Level.

USDJPY: As USDJPY followed through to the downside breaking back below its major emasto close lower at 97.40, risk of further downside weakness targeting its strong support at 95.62 level, its April 28’09 low is now shaping up. With its daily momentum indicators pointing lower, below the 95.62 level could see the pair heading further lower towards the 93.54 level, its Mar 19’09 low. We still envisage the pair ending its current nearer term weakness and then resuming its short term uptrend initiated at the 87.13 zone. To the topside, its major emasat 97.98 level will be initially targeted ahead of the 99.73 level, its May 07’09 high with a turn above there bringing further upside acceleration towards the 101.43 level, its April 06’09 high with a 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, though now in a corrective mode, USDJPY is expected to resume its overall short term uptrend.