HIGHLIGHTS:

USDJPY: Hesitation Still Dominates – While the pair still holds on to most of recovery gains off the 89.12 level, its Jan 27’10 low, it is now hesitating ahead of its minor resistance at the 91.27 level....

GBPUSD: On The Verge Of Retargeting The 1.5849/30 Level. – Outlook for the pair has turned towards its hammer/Feb01’10/2010....


USDJPY

USDJPY

USDJPY: Hesitation Still Dominates

USDJPY – While the pair still holds on to most of recovery gains off the 89.12 level, its Jan 27’10 low, it is now hesitating ahead of its minor resistance at the 91.27 level. USDJPY requires a decisive invalidation of the latter to resume its recovery and then targetits Jan 21’10 high located at 91.86 ahead of the 92.62 level, its channel top. A halt is expected to turn the pair lower on initial retest of the latter. On the other hand, continued hesitation ahead of the mentioned resistance levels will suggest a reversal lower could shape up towards the 89.12 level with a trade below there paving the way for a run at the 88.30 level, its Dec 14’09. Below there will put USDJPY on the path to further declines towards its Dec 09’09 level at 87.35 and then the 85.85 level, its Nov 30’09 high. Further weakness if seen will turn downside pressure towards the 84.80 level, its 2009 low. This view remains valid while the pair trades and maintains within its defined falling channel.


GBPUSD

GBPUSD

GBPUSD: On The Verge Of Retargeting The 1.5849/30 Level.

GBPUSD – Outlook for the pair has turned towards its hammer/Feb01’10/2010 lows at 1.5849/30 and even lower following its loss of momentum at the 1.6068 level and ahead of its strong resistance at the 1.6075 level on Wednesday. We now see risk below the 1.5849 level creating further downside scope towards the 1.5830 level, its Dec 30’09 low ahead of the 1.5706 level, its Oct 13’09 low where the pair may see a respite. Below there will resume its declines started at the 1.7041 level towards its .50 Fibonacci retracement (1.3501-1.7041 rally) at 1.5273. Its daily RSI is bearish and pointing lower suggesting further downside weakness. The risk to our current downside view will be a break and hold above the 1.6068/75 level which should trigger further upside towards the 1.6274 level, its Jan 28’10 high and its ST falling trendlineat 1.6360. We expect these levels to reverse roles and turn the pair lower if seen