USDJPY: Bearish, Weakness Pressures the 75.92 Level
USDJPY: With a follow through lower on the back of its past week gains now seen, further weakness is now envisaged towards the 75.92 level, its 2011 low.
USDJPY has been under bear pressure since topping out at the 124.13 level in Jun’2007 and with that downtrend remaining intact, a convincing violation of the 75.92 level will set the stage for further weakness towards the 74.00 level.
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Further down, support stands at the 73.00 level and then the 72.00 level, representing its psycho level. Its weekly RSI is bearish and pointing lower suggesting further weakness.
Alternatively, the pair will have to break and close above the 77.85/80.19 levels, its Aug 04’2011/Sept 09’2011 highs to end its bear threats and create scope for further gains towards the 81.47 level, its July 08’2011 high and subsequently the 82.21 level.
Further resistance resides at the 83.27 level, its April 18’2011 high. All in all, USDJPY remains biased to the downside in the long term as it looks to resume that trend.
GBPJPY: Bearish Momentum Remains Intact, Set For The 188.80 Level
GBPJPY – As continued bearish momentum remains in place pushing the cross lower for the past week, a follow through lower is now underway.
GBPJPY has been under intense bear pressure since failing at 139.99 level in April’2011 and with a convincing break and hold below the 123.27 level, its Aug 10’2011 low seen, the cross looks to target its major support at 118.80 level, its 2009 low.
That level may present a considerable support on an initial test and turn the cross back up possibly for a correction.
However, if this fails, we should see further weakness towards the 118.00 level, its psycho level and beyond. Both its weekly and daily RSI are bearish and pointing lower supporting this view.
On the other hand, a corrective recovery if seen should initially target the 121.74 level, its Sept 16’2011 high with a violation of that level targeting the 122.26 level, its Sept 15’2011 high.
Above here will create scope for a move higher towards its Sept 09’2011 high at 124.22 level.
