Technically speaking…

For October 14th 2009

USDJPY

USDJPY went straight up on Monday, hitting 90.45 high before it went down a bit towards 89.42. It
seems that the upside is more favorable at the moment as it now aims for 90.93 to complete its first
corrective swing up. Higher, we have 91.71 as the next hurdle and then the 92.00-92.40 resistance area.
It is likely however, that the upmove will not be so smooth as we have some hurdles on the upside. The
first will be the descending trendline at 90.00 (at the current hourly bar, but it will decline a few pips
each hour), and the 90.45 peak itself. Downside is supported at 89.42 which is within the proximity of
38.2% retracement level at 89.51. Going lower we have 89.22 and 88.93. For now, focus on the upside
but cautious as the pair nears 90.45.
 GBPUSD

Apparently, cable went straight down on Monday and again on Tuesday, hitting the low at 1.5727, just
ahead of the retracement point at 1.5685. At the moment, it seems to have completed its second leg
down from 1.6740. So, an upward pressure is expected for the coming sessions. Upside resistances lie
around 1.6099 (yellow area) where multiple obstacles are scattered.
Measuring the retracement levels for the upmove on the hourly chart suggests 1.5961 as the next
upside target. With the current upswing entering the fifth leg, the pair may recoil back downwards after
reaching 1.5961. Should by then some reversal patterns emerge, a completion of the upswing is
expected and the pair may backoff a bit (probably around 1.5875) before aiming at 1.6099 area. At the
moment, immediate support is at 1.5875 with minor one at 1.5912.

Any information contained in this document are based on or derived from information generally available to the public from sources believed
to be reliable. There’s no representation or warranty is made or implied that it is accurate or complete. Any opinions expressed are subject to
change without notice. This post has been prepared solely for information purposes and does not constitute any solicitation to buy or sell any
instrument, or to engage in any trading strategy.

Charts are obtained from Alpari UK