Daily Market Technicals 23/01/2001

For the majority of the Asian session currency markets were lifeless. USDJPY spent most of the day range trading between the open of 116.30 to 116.65. The resignation of Japan’s Economy Minister Fukushiro Nukaga in the shadow of scandal gave USDJPY only a slight boost in the face of technical weakness. Later, near the end of the session USDJPY rallied aggressively following a statement by the influential Sakakibara who stressed that the G-7 nations were not concerned with the current strength of USDJPY and EURJPY. These comments spurred dealers to cover shorts and provided momentum to gun for topside stops in USDJPY located above 117.20. EURUSD also took off after inching up from a low of .9382 to .9415, stop buying accelerated the pair to .9450 running out of steam. GBPUSD was quiet trading in a 1.4647-1.4700 range. AUDUSD and NZDUSD were also fairly quiet today trading in .5554-.5570 and .4473-.4490 ranges respectively.

EUR-USD

Target 0.9501 Buy at 0.9350 Stop at 0.9325

Resistance:0.95010.94300.9417

Support:0.93490.92880.9262

 Market climbing steadily as rebound from the 17-Jan low of 0.9288 continues. Ability to remain above 0.9262 implies underlying medium term uptrend remains influential as trade continues to consolidate above the old weekly bear channel. With bias skewed to topside buying dips toward 0.9350 is favoured in anticipation of an attempt to push above 0.9417 to challenge 0.9501 then the 0.9593 high. Wrong below 0.9262

GBP/USD

Target 1.4510 Short at 1.4710/1,4700 Stop at 1.4730

Resistance:1.47371.46951.4668

Support:1.46251.45121.4475

Asian afternoon trade has seen the market push above 1.4668 thus reducing near term downside risks and threatening our stop at 1.4690. With daily techs attempting to firm consideration needs to be given to the potential for probes above 1.4695/4700 toward resistance at 1.4737 and the high of 18-Jan at 1.4767. Would expect to see upticks stall in this region initially. Near term bears to be revived below 1.4635/30

USD-JPY

Target 117.64 Buy at 116.80 Stop at 116.55

Resistance:117.64117.00116.80

Support:116.15115.60115.50

View current slip back from the Asian session high of 117.43 as a cautious buying opportunity to 116.80. While above this level room is seen for further probes to the topside although overbought weekly techs suggest profit taking should be considered in the 118.00 region. Failure to hold 116.80/79 would see a retreat in excess of 50% of the 116.15 to 117.43 upleg and would risk return to lower end.

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