HIGHLIGHTS:

GBPUSD: Collapses Off The 1.6692 Level - Following the pair’s marginal lower close on Thursday after reversing most of its intra day its intra day losses, it was seen selling off sharply.

EURJPY: On The Verge Of Breaking Triangle Pattern - With our previous and recent calls for a trade towards and an eventual break of its symmetrical triangle top at 138.02, that level.


GBPUSD

GBPUSD

GBPUSD: Collapses Off The 1.6692 Level

GBPUSD - Following the pair’s marginal lower close on Thursday after reversing most of its intra day its intra day losses, it was seen selling off sharply in early trading today. The question now is what is the risk? The immediate risk of this sell off is the 1.6466 level, its Sept 23’09 high which the pair is current trading below and the next lies at its breaking out point at 1.6411. In order for the pair’s recovery triggered off the 1.5706 level to be maintained, those levels(1.6466/11) must hold or a return back into its invalidated channel could be seen. That will expose the 1.6239 level, its Oct 19’09 low with a cut through there setting the stage for further declines towards the 1.6124 level, its Sept 30’09 high and then its Oct 14’09 high at 1.6024 ahead of the 1.5837 level, its Oct 13’09 high. On the upside, resistance lies at its Oct 21’09 high at 1.6635 with a loss of there opening up further upside risk towards the 1.6740 level, its Sept 11’09 highwhere a break higher will pave the way for a run at the its YTD high at 1.7041.
To avert the current downside weakness, a close above the 1.6692 level must occur. On the whole, with the pair being challenged by a sharp corrective declines, immediate risk now remains to the downside.


EURJPY

EURJPY

EURJPY: On The Verge Of Breaking Triangle Pattern.

EURJPY - With our previous and recent calls for a trade towards and an eventual break of its symmetrical triangle top at 138.02, that level is currently under attack as the time of this analysis. On a decisive break of there, risk will turn to the 138.71 level where its Aug 07’09 high is located. Above the latter will clear the way for a run at the 139.26 level, its YTD high where a violation will activate the resumption of its MT uptrend. Its daily/weekly momentum indicators have turned higher supporting this view. To the downside, the 136.96 level, its Oct 21’09 high will be targeted ahead of the 133.02 level and then the 132.16 level, marking its Oct 12’09 low with a turn below there exposing the 130.61 level, its Sept 30’09 high. We maintain our medium term upside bias view on the cross suggesting its current price consolidation within the symmetrical triangle remains corrective of its MT uptrend initiated from the 112.07 level. A break out of that triangle now shaping up will bring the resumption of that trend.On the whole, with continued upside momentum seen, EURJPY looks to breakout of its triangle pattern and possibly retarget its YTD high at 139.26.