Daily Technical Strategist

Daily Forex Technicals | Written by FXTechstrategy | Jan 06 09 13:26 GMT |

Today's Focus: EURUSD & USDJPY

• EURUSD: Extends Its Corrective Decline Off The 1.4719 Level, Aims At The 1.3298 Level.
• USDJPY: Corrective Upmove Eyes The 93.56 Level.

EURUSD

A build up on Friday losses saw the pair cutting through the 1.3882/1.3900 area, its Sept 11'08 high/.618 Ret and the 1.3785 level, its Oct 09'08 high to close lower Monday at 1.3637.It was seen weakening sharply in early morning trading today opening up downside risk towards the 1.3298 level, its Dec 11'08 high/former range top. The daily and weekly RSI are bearish and pointing lower suggesting further downside weakness. This said level is envisaged to provide respite for the pair‘s current slide and trigger consolidation to corrective upside recovery. The level preserves EUR's short term uptrend activated at the 1.2423 level on Nov 20'08 and a loss of there will reverse the said ST uptrend and bring additional losses towards the 1.3081 level, its Nov 25'08 high. Initial resistance is located at the 1.3531 level, its Oct 20'08 high followed by the 1.3785 level, its Oct 09'08 high and the 1.3882/1.3900 area, its Sept 11'08 high/.618 Ret. Above these levels are required to signal a move towards the 1.4363 and the 1.4719 levels, representing its Dec 18 & 29'08 highs. On the whole, losses of key support levels have now opened up downside risk towards the 1.3298 level.

Support	Comments
1.3298	Dec 11'08 high/former range top
1.3081	Nov 25'08 high
1.3785	Oct 09'08 high
Resistance	Comments
1.3531	Oct 20'08 high
1.3785	Oct 09'08 high
1.3882/1.3900	Sept 11'08 high/.618 Ret.

USDJPY

The pair followed through to the upside on its Friday gains yesterday trading within 7 pips from its Nov 20'08 low at 93.56.We continue to see this level or even the 93.90 level, its Dec 08'08 high limiting upside gains and turning the pair lower in line with its medium term bearishness. Further out, another resistance level lies at the 96.35/95.75 level, its Oct 31'08/Mar'08.its daily stochastics is bullish to overbought. Downside target resides at the 90.91 level, its Oct 24'08 low with a loss of there opening the door for declines towards the 88.34 level, its Dec 12'08 low and the 87.13 level, its Dec 17'08 and later the 86.52 level, its 1.618 Fib Ext.On the whole, although the pair is now undergoing a correction, its overall medium term bearish tone remains in place.

Support	Comments
90.91	Oct 24'08 low
88.34	YTD/Hammer lows
87.13	YTD low
Resistance	Comments
93.56	Nov 20'08 low
96.35/95.75	Oct 31'08/Mar'08
97.43	Nov 24'08 high

Mohammed Isah
Market Analyst
www.fxtechstrategy.com

This report is prepared solely for information and data purposes. Opinions, estimates and projections contained herein are the author's own as of the date hereof and are subject to change without notice. The information and opinions contained herein have been compiled or arrived at from sources believed to be reliable but no representation or warranty, express or implied, is made as to their accuracy or completeness and neither the information nor the forecast shall be taken as a representation for which the author incur any responsibility. The does not accept any liability whatsoever for any loss arising from any use of this report or its contents. This report is not construed as an offer to sell or solicitation of any offer to buy any of the currencies referred to in this report