HIGHLIGHTS:

GBPUSD: Challenges Channel Resistance - GBP was seen attacking its strong resistance at 1.6431 where its channel resistance is located in early trading today.

USDJPY: Weakness Puts The 90.44 Level Under Pressure - A second day of weakness is now in progress and was seen attacking its key support standing at the 90.44 level, its Oct 12’09 high today.


GBPUSD

GBPUSD

GBPUSD: Challenges Channel Resistance

GBPUSD - GBP was seen attacking its strong resistance at 1.6431 where its channel resistance is located in early trading today. While that level is now vulnerable, a convincing break of there must be seen to put another key resistance standing at its Sept 23’09 high at 1.6463 under pressure. We envisage a price stall at this zone but if that fails to occur recovery higher targeting even the 1.6740 level, its Sept 11’09 high may be seen. However, backing off the mentioned level will mean declines towards the 1.6239 level and then the 1.6124 level which is expected to reverse roles and 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 1.6431/63 level may pose a threat to that strength.


USDJPY

USDJPY

USDJPY: Weakness Puts The 90.44 Level Under Pressure.

USDJPY - A second day of weakness is now in progress and was seen attacking its key support standing at the 90.44 level, its Oct 12’09 high today. If that level gives in we should expect declines towards the 88.82 level where its Oct 14’09 low is located with a break below there paving the way for further downside pressure towards 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. Its daily studies have turned lower supporting this view. To the topside, its Oct 16’09 high at 91.31 is seen as resistance with a turn above there reversing its current weakness and opening up further upside towards its Sept 24’09 low at 92.52. On the whole, EURJPY remains weak shorter term and should resume that trend on ending itSpresent correction.