HIGHLIGHTS:

EURUSD: Turning Off Ahead Of The 1.3738 Level- A continuation of the weakness off the 1.4049 level saw declining further lower Wednesday to close at 1.3825.

USDJPY: Giving Back Its Corrective Gains- Recovery failure was seen in early trading today pushing the pair back down through the 96.69 level, its May 19’09 high after a test of 97.23 high on Thursday.


EURUSD

EURUSD

EURUSD: Turning Off Ahead Of The 1.3738 Level.

EURUSD: A continuation of the weakness off the 1.4049 level saw declining further lower Wednesday to close at 1.3825. It was however seen backing off ahead of the 1.3720/38 levels, its Mar 04’09/May 13’09 highs in early trading today. With that said, support is initially located at the 1.3720/38 levels, its Mar 04’09/May 13’09 highs where a cap is expected. Below there will speed up more declines towards the 1.3446 level which is the location of its 200 daily emaand then the 1.3385 level, its April 30’09 high. On the upside, invalidating its strong psycho level at 1.4000 is required to trigger further upside gains towards the 1.4049 level , its 2009 high with a loss of there opening the door for the resumption of its short term upside towards the 1.4361 level, its Dec 29’08 high ahead of the 1.4718 level, its Dec 18’08 high. On the whole, EUR looks to resume its ST uptrend on ending its current corrective price activities.


USDJPY

USDJPY

USDJPY: Giving Back Its Corrective Gains.

USDJPY: Recovery failure was seen in early trading today pushing the pair back down through the 96.69 level, its May 19’09 high after a test of 97.23 high on Thursday. This development now leaves USDJPY targeting more downside towards the 95.62 level, its April 28’09 low and then the 93.85/54 level, its Mar 19’09/May 22’09 lows. Our outlook on the pair remains lower which is consistent with its overall weakness off the 101.43 level. However, resistance levels are sited at the 96.69 level, its May 19’09 high and the 97.93 level, its May 06’09 low with a loss of the latter paving the way for a push towards the 99.73 level, its May 07’09 high and then the 101.43 level. On the whole, though correcting , its overall downside weakness remains alive.