Supports and Resistances for August 10, 2007

Hi all,

Its been an awesome week so far with great volatility and wild swinging in both sides. Even small news events seem to shake the market a lot and that is not a good sign. One of the advantages of the forex market has been its liquidity which ensured that the market does not over react to small news events which would give it stability and a bit of predictability. But the last few days, the liquidity seems to have become less which makes the market high volatile and makes it react to small news events, events which would not have caused a 50 pip move about 2 mnths back are now leading to 200 pip moves. Lets hope that this gets blown over soon. Yesterday, was a bad day for longs but with the crosses near their weekly supports, we should see some upmove. Below are the supports and resistances for the JPY crosses for today:-

USDJPY - Important support at 117.95. If that is broken, next support is at 117.63 which is a very strong support and the final major support is at 117.20. On the topside, the resistance is at 118.70 and then at 119.30.

EURJPY - Important support at 160.90. If that is broken, next support is at 160.20 and the final major support is at 159.50. On the topside, the resistance is at 161.70 and then at 162.50.

GBPJPY - Important support at 238.27. If that is broken, next support is at 237.80 and the final major support is at 237.50. On the topside, the resistance is at 239.03 and then a major resistance at 240.65.

Happy Trading!!!