HIGHLIGHTS:

GBPUSD: Maintains Corrective Upside Momentum - The pair continues to build on its recovery activated at the 1.5706 level breaking decisively through the 1.6124 level(Sept 30’09 high) on Thursday to close higher at 1.6338.

USDJPY: Building On Recovery Strength - A higher weekly close is now underway as USDJPY continues to head higher building on its recovery triggered off the 88.00 level.


GBPUSD

GBPUSD

GBPUSD: Maintains Corrective Upside Momentum

GBPUSD - The pair continues to build on its recovery activated at the 1.5706 level breaking decisively through the 1.6124 level(Sept 30’09 high) on Thursday to close higher at 1.6338. It was seen hesitating in early trading today and its next target stands at its ST declining trendlineinitiated at the 1.7041 level currently at 1.5452. That level is within the vicinity of its Sept 23’09 high at 1.6463 level and with a combination of these two levels GBP should face a tough time pushing through that zone on initial test.
However, if that level gives way, we could see this recovery developing more momentum towards the 1.6740 level, its Sept 11’09 high. Its daily studies are bullish and trending higher suggesting further strength. On the other hand, on any pullback from its current price level, the 1.6124 level just violated should provide support . Further down, its Oct 14’09 high at 1.6024 will come in as the next support ahead of the 1.5837 level, its Oct 13’09 high and the 1.5706 level, its Oct 13’09 low. On the whole, with corrective strength continuing to be seen, further upside threats are expected but the 1.6452/63 level may pose a threat to that strength.


USDJPY

USDJPY

USDJPY: Building On Recovery Strength

USDJPY - A higher weekly close is now underway as USDJPY continues to head higher building on its recovery triggered off the 88.00 level. While the pair remains trapped within its declining channel and biased to the downside in the short term, it faces immediate upside risk nearer term as correction continues to build up. That risk should shape up towards its Sept 24’09 low at 92.52 where a cap could be seen turning off the pair again. USDJPY currently enjoys the support of its daily stochasticsand RSI which are both pointing higher. On the downside, initial support lies at the 90.44 level, its Oct 12’09 high which is now expected to reverse roles. Below there will bring the 88.82 level, its Oct 14’09 high into focus with a break and close below that level targeting its Oct 07’09 low at 88.00. This level serves as the trigger for the resumption of its short term downtrend currently on hold. On the whole, with the 90.44 level violated, the pair’s recovery higher initiated at the 88.00 level now targets additional upside gains.