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It is looking more and more apparent that the intervention is not able to cap Japanese strength in our current risk-off environment. The GBP/JPY is pushed back to a critical support at 127.00. Falling below this and then 126.68 near the 61.8% retracement suggests bearish continuation. If the market can hold below

Despite last week’s selloff to 0.8644, the subsequent rebound suggests minor consolidation would be seen, however, upside should be limited to intra-day resistance at 0.8757 and bring another decline, break of said support would extend the fall from 0.9084 top towards previous support at 0.8611 (wave a low), however, oversold

Although the greenback has risen again after brief pullback and the major rebound from bottom of wave 5 is still in progress, loss of upward momentum should prevent sharp rise beyond 0.9955/60 and reckon psychological resistance at 1.0000 would limit upside and bring retreat later. Below intra-day support at 0.9782

Despite initial brief rise in euro in reaction to downgrade of U.S. AAA rating by Standard & Poor's over the weekend, the single currency then retreated sharply in Asian and European sessions on massive risk aversions due to further weakness in global stock markets. Major Asian indices (including Nikkei and

With a follow through lower seeing the pair eroding the 1.0389 level, its Jun'27 '2011 low during Monday trading today, further bearishness is expected towards its April 05'2011 low at 1.0287. AUDUSD has been under pressure since collapsing off the 1.1078 level on July 28'2011. On a cut through the

Both the Aussie and the Kiwi are showing significant declines. While the AUD/USD formed a double top, the NZD/USD does not have such topping action. However the 4H chart does offer some clues to a reversal in place. 1) 5-wave decline taking place (the motive wave may not be over yet,

EUR/USD's rebound form 1.4054 lacks follow through buying and weakens sharply into early US session. the break of 1.4239 minor support mixes up near term outlook and we'll turn neutral first. On the upside, note again that break of 1.4537 resistance is needed to confirm resumption of rebound from 1.3837,

GBP/USD fails to take out 1.6474 resistance today and is staying in range of 1.6223/6474. More consolidation trading could still be seen in near term and another fall cannot be ruled out. But even in that case, we'd expect strong support at 1.6004/6193 support zone to contain downside and bring

With 0.7801 resistance intact, USD/CHF's fall is still expected to continue and should be targeting 200% projection of 0.8519 to 0.8081 from 0.8277 at 0.7401. On the upside, break of 0.7801 resistance will indicate short term bottoming and bring stronger rebound. Nevertheless, before that, we'll stay bearish even in case of recovery.

As noted before, USD/JPY's rebound from 76.28 has likely finished at 80.23 already. Intraday bias remains mildly on the downside for retesting this support first and break will confirm resumption of the whole fall from 85.51. On the upside, 78.59 minor resistance will flip bias back to the upside 80.23