Supports and Resistances for July 27, 2007

Hi all,

Well, guys, as all of you would have seen, the crosses were routed yesterday. GJ dropped 400 pips on a signale day which is something that does not happen everyday. The traders seem to be risk averse now and they have started moving on to safer investments like bonds etc. They need money to invest in these and so they are selling off their holdings in currencies and investing them in the bonds and hence the correction. As usual, the crooses end the day near some strong support, something which they have been doing for the past 4 days and it is anybody's guess which direction they would go today. As for tose people who now claim that they 'told you so', i would like to say that if you keep saying the same thing every 2 days, obviously, one of these days, you are going to get it right. Anyway, lets see how the market reacts. I would advise people to be careful knowing that these crosses are beasts, Know the S and R well and play within these S and R. If you try to outgues the market, we all know what it can do to us. Below are the supports and resistances for the JPY crosses for today:-

USDJPY - Important support at 118.75. If that is broken, next support is at 118.34 which is a very strong support and the final major support is at 117.90. On the topside, the resistance is at 119.53 and then at 120.31.

EURJPY - Important support at 163.37. If that is broken, next support is at 162.49 and the final major support is at 162.05. On the topside, the resistance is at 164.05 and then at 164.62.

GBPJPY - Important support at 243.62. If that is broken, next support is at 242.97 and the final major support is at 242.20. On the topside, the resistance is at 245.28 and then a major resistance at 246.05.

Happy Trading!!!