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[highlight=red]EURO[/highlight]
The Asian session saw EUR/USD dip below $1.4625 before the price bounced to an overnight high of $1.4658. EUR/USD is now seen trading in a $1.4625/50 range. More EUR/USD resistance is seen into the $1.4675 area, and further up at $1.4700 while on the downside $1.4590 - $1.4600 support will come into play on a dip.

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[highlight=red]BRITISH POUND[/highlight]

The GBP/USD opened Asian trading at around $ 1.9720 and traded up to $1.9727 early in the session falling hard to as low as $1.9666 due to carry trade liquidation and massive GBP/JPY selling. The pair then settled around $1.9770/80 for the remainder of the session. The strong performance of the GBP/USD lately still looks corrective to some analysts and a break below yesterday?s low of $1.9605 might see the down-trend resume.

[highlight=red]Japanese Yen[/highlight]
USD/JPY headed lower in the Asian trading session as the Nikkei fell over 3% at one point, pushing USD/JPY down to as low as ?106.35 before buying interest, combined with a recovery in the Nikkei, helped USD/JPY rally. The pair traded up to a high of ?107.17, before sliding back to ?107.00 early in the European session. With little in the way of economic data scheduled for today, traders will primarily focus on the performance of equity markets to asses the direction of this pair.

USDJPY shot and broke through its 2007 low at 107.22 on Wednesday testing a new 31-month high of 105.92 and resuming its medium term downtrend on hold since Nov 26'07.With the loss of the said support focus now shifts to the 106.50 level, its June 07'05 low followed by its Jan 16'08 low at 105.92 and then the 104.20, which marks its May'04 low. The weekly studies remain supportive of this view as they are trending lower implying further weakness. On the upside, the 107.22 level just eroded is now expected to reverse roles and provide resistance where a failure if it occurs could trigger additional strength towards the 109.13/108.99 zone, the location of its Nov 11'07 / May'06 lows ahead of its Aug 12'07 low at 111.58. Additional resistance stands at its Sept 12'07 low at 112.60.On the whole, having broken the 107.22 level and activated the resumption of its medium term downtrend, odds are for further extension of those losses.

Directional Bias:

Nearer Term -Bearish
Short Term -Bearish
Medium Term -Bearish
Performance in %:

Past Week: +1.84%
Past Month: +0.48%
Past Quarter: -2.67%
Year-To-Date: -4.36%
Weekly Range:

High -108.97
Low -105.92

GbpUsd traded between two important support and resistance levels for the most part of the week, after bouncing from the 1.9550 zone it was rejected by the resistance area above 1.9700 and this scenario repeated 3 times during this past week; only On Thursday the pair managed to spike up toward the 1.9800 level but it lacked strength to stay there and fell back to close the week pips away from the 1.9550 base. A continuation of Friday's move in the next few days will certainly confirm the bearish trend for the last couple of months, a break below 1.9550 will open up the road to 1.9180 as the main bearish target and support level. Conversely a bounce from the 1.9550 that will get the pair trading above 1.9600 will force us once again in the above mentioned range and we will have to look at 1.9670 as the next short term target. Same as in the EurUsd case the pairs trading volume on Monday will be affected by the US holiday and to some extent we could witness some erratic price action or a very mellow day.

Resistance Levels

2.1148 - Nov 9th High
2.1065 - Nov 7th High
2.0650 - July 24th High
2.0365 - September 12th High
Support Levels

2.0000 - Round number
1.9800 - Round Number
1.9670 - August 17th Low
GBPUSD Weekly Chart

USD/JPY headed lower in the Asian trading session as the Nikkei fell over 3% at one point, pushing USD/JPY down to as low as ?106.35 before buying interest, combined with a recovery in the Nikkei, helped USD/JPY rally. The pair traded up to a high of ?107.17, before sliding back to ?107.00 early in the European session. With little in the way of economic data scheduled for today, traders will primarily focus on the performance of equity markets to asses the direction of this pair.

USD/JPY headed lower in the Asian trading session as the Nikkei fell over 3% at one point, pushing USD/JPY down to as low as ?106.35 before buying interest, combined with a recovery in the Nikkei, helped USD/JPY rally. The pair traded up to a high of ?107.17, before sliding back to ?107.00 early in the European session. With little in the way of economic data scheduled for today, traders will primarily focus on the performance of equity markets to asses the direction of this pair.

EurUsd failed to print a new high on the weekly chart, it stopped just under the November 23rd high at 1.4966 at the resistance offered by the trendline that connects August and September 2007 swing lows. Breaking the weekly movement on a daily basis we see that Monday the pair pushed higher and although it made a new high on Tuesday after that we had a straight down move supported by a speech from an ECB banker and the fact the EurUsd was trading in an overbought area. The weekly low was made on Thursday at 1.4587 and after that we saw the bearish momentum slowing down and the pair closed just above 1.4600. We maintain our bearish bias for the following days with the mention that Monday is a holiday in the US and trading might be slow; perhaps the most important bearish target is December 20th low at 1.4300 which is also an important support level a place where bullish traders will want to use as a base for a repeat of December's movement.

Resistance Levels

1.5000-- round number
1.4966- Nov 23rd high
1.4735 -Nov 9th High
Support Levels

1.4500- round number
1.4300 - Sept 30th High
1.4000 - Round number
1.3850 - July 24th High

USD/JPY Open 106.42 High 107.87 Low 106.36 Close 106.91

The downward trend for the US Dollar against Japanese Yen continues, after the level 107.85 gave resistance. If that level is broken, next resistances are expected at 108.35 and 109.10. If the downward trend deepens, supports are expected at 106.35, followed by 105.85, and 104.35.

Technical resistance levels: 107.85 108.35 109.10
Technical support levels: 106.35 105.85 104.35

Trading range: 107.70 - 106.95
Trend: Downward
Sell at 107.57 SL 107.87 TP 107.07