[Dan]

• Over the past 5 sessions:
o The Dow has rallied from 8,687 to 9,093
o Crude has rallied from $63.38 to $68.75
o And EURUSD has effectively moved sideways around 1.42-1.4250

• Additionally we saw good European data out on Friday, another reason why EURUSD should have rallied, but did not.

• We may well see further short term gains stocks and commodities though the setup on EURUSD shows significant resistance up to 1.4365. A hold of this area would still warn of further consolidation in the short term.

EURUSD, Dow Industrials and Crude


EURJPY


EURJPY is now above the 55 week moving average though it did not post a weekly close above there last week. From a medium term perspective we still need to treat this market with some caution. While the pair could stretch up to the resistance levels at 136.90 – 137.42, we would need to see a weekly close above the 55 week moving average (134.66) before suggesting significant gains ahead.

[Dan]

EURJPY


• The 76.47 against the high is at 136.37 and the market is beginning to stall just under there
• There is also momentum divergence on the 240 min chart warning of short term weakness
• Intraday supports are at 133.85,132.10 and 131.60.
• Resistance levels above 136.37 are at 136.90 and 137.42 and a rally through there would open the way for the highs again.

EURJPY Daily chart