Technical Outlook for the week of 31 Jan-04 Feb
EURUSD
Important resistance level was found in the 1.3120/30 area, where we have a double top formed
in the last two weeks. As we can see on the chart, this resistance level is also the 38.2% retracement
of the 1.2225-1.3665 rally. Any breach here, on the first major resistance level will probably push the
EUR higher where it will face the second resistance level at 1.3205/10. On the other side, major support
was found in the 1.2945/55 area, also the 50% retracement of the 1.2225-1.3665 move. A break of the first
important support in the 1.29/3 area (1.292 thru 1.295 and 1.298 trend line) will accelerate the further decline
of the EUR towards the major support at 1.2945/55 I mentioned before and this is exactly what we expect for the mid term.
In fact, if this breakout at 1.2950 will occur, we will probably say bye bye to the 1.3 area.
We look forward for a short entry around 1.3130/50 and hold it for an exit around 1.2920/40. 
USDJPY
Major support key was found in the 102.95 area after a new test of the second support level at 102.46 where
a fresh double bottom was formed.
The pair is still trading in range (101.63 thru 103 support and 103.2 thru 104.3 resistance) and currently
right above its 50 period EMA. Important resistance is seen in the 103.76 area followed by 104.37/45.
If the first support level at 102.94 will be strong enough to hold for another test, we will probably see
a new rally and a breach of the second resistance level that will push the dollar higher, towards 105 area.
A range breakout in the 103 area will dig the hole for fresh lows towards 101 area.
For a mid term position, we will wait for a new range support test. If it holds, we will target the 104.70/105
area. 
GBPUSD
Starting with the breakout at 1.8740 of 01/14, the cable is trading in the range of 1.8523 thru 1.8623 support
and 1.8750 thru 1.8935 resistance.
Strong resistance is seen at 1.8935 and a break here will push the cable out of its current range area where it
will face the second resistance key at 1.9084.
Important support level was formed in the 1.8810/20 area. A breach here will drag the cable into the deeps of
1.86 area where it will probably face the second major support at 1.8621.
We look forward for a resistance breakout and probably go long for a target around 1.908. 
EURJPY
The pair is still trading in range. Major resistance is seen at 135.43. A breach here will encourage the EUR
for a rally towards the second important resistance key seen at 136.30.
Support was found in the 133.60/70 area (double bottom and also the range support of 133 thru 133.8) followed
by 132.96. We believe that the pair will continue its wave movements nicely on the same range for a few more
days, therefore, keep an eye on every resistance and support tests because there could be great entry opportunities.
