HIGHLIGHTS:

USDJPY:  Stalls At The 94.43 Level -A halt of its upside gains triggered off the 91.73 level saw the pair turning sharply lower Thursday.

EURUSD: Consolidation With Eyes On The Upside -Though still consolidating and range trading, price activities Thursday saw the pair building on its Wednesday gains to close higher at 1.4131.


USDJPY

USD JPY

USDJPY: Stalls At The 94.43 Level

USDJPY: A halt of its upside gains triggered off the 91.73 level saw the pair turning sharply lower Thursday. This is coming on the back of a price failure at the 94.43 level and now opens up further corrective downside towards the 93.58 level initially ahead of the 92.70 level, its July 14’09 low and then the 91.73 level with a clearance of there bringing more declines towards its psycho support at 90.00 level and then the 89.67 level, representing its Feb 11’09 low. To the upside, resistance starts at the 94.45 level with a break of there turning attention to the 96.97 level, its July’09 high and then the 97.40 level, its declining channel resistance where a cap is expected. Above there if seen will expose the 98.88 level, its Jun 05’09 high. On the whole, with its recovery starting to stall, USDJPY looks to resume its overall downtrend.


EURUSD

EURUSD

EURUSD: Consolidation With Eyes On The Upside

EURUSD-Though still consolidating and range trading, price activities Thursday saw the pair building on its Wednesday gains to close higher at 1.4131. It was however seen backing off its Thursday high at 1.4164 in early trading today. Having closed higher yesterday, a convincing break and hold above the 1.4177/1.4200 levels, its Jun 11'09 high/July 01’09 must be seen to reduce its present downside pressure and bring upside gains towards its YTD high at 1.4339. Beyond there will open the door for resumption of its medium term uptrend towards the 1.4719 level, its Dec 18’08 high and possibly higher targeting the 1.4867 level, its Sept 22’08 high. Daily stochsticsremains supportive of this scenario. However, if a failure is seen, EUR should push lower towards the 1.3831 level, its July 08’09 low and then the 1.3747 level, its Jun 16’09 low where a cap is expected. Below that level if seen will turn focus to the 1.3618 level, its weekly 200 ema. On the whole, with a halt in its nearer term downside seen, threats of further gains are likely.