NEKKEI Valuts the 10000 Mark, Hitting Resistance

The 10125/31 area is shaping up as resistance ahead of the yearly highs at the 10170.82 mark. The JPY is holding it own for now. The German Consumer Confedence number is the only one of note. Not until Wednesday when we see German CPI Hamonized, are there any releases big enough to move the market. Most moves will most likely be based on corpporate releases. I am still long the USDJPY for 97.88 but expect some weakness to the 94.37 area first.

Asia gaps higher, supporting more risk sentiment.

This trend looks to be continuing. USD bulls best start reaching for their hats, this ride may be getting bumpy. If Europe gets in and the FTSE rockets, the USD will almost certainly break down, if it hasn't already under Asian pressure. Watch for the JPY to soften against the EUR, GBP as well as teh USD.

USDCAD Above 1.0792 Significant Level, Make or Break Going Forward

With the BoC not wanting to see the CAD get too strong too fast, they did a little talking down the CAD last week. If risk sentiment and Equities keep rising there may bee little they can do to stop it. A strong CAD will slow their growth and begin hindering their prospects for being out of a recession by next quarter as they said would happen last week. Oil is again supporting the CAD and traders are steering away form the USD in search of higher profits. This 1.0792/800 level was key going back to 2007, then again in 2008 and now in 09'. Long term- A break here opens up the possibility that the pair could hit parity and as low as .9056. Near Term- A Retracement to 1.0926, 1.1100 and possibly as high as 1.1314 could be seen.

EURUSD May Probe Support First

There is great possibility that the pair will test support before continuing to the top side. I expect 1.4118 and possibly 1.4050 to be tested. Any sign of weekness in the equities will support this retracment of recent strength. Breaking below 1.4153/65 will be the first sign that a deeper retracment is in store.

GBPJPY Resistance Holds For Now

Though I don't think ti is going to hold throughout the week. Wit good earnings posted last meek it appears that the same might hold tru this weeks. The difference is that many of the releases this week will be companies that make consumer products, giving a better picture of what consumers are really willing to spend.

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