Following is a selection of comments from analysts on important technical developments in the foreign exchange market.
DOLLAR/YEN: "A break of 119.50 yen would prompt a more aggressive short-covering to 122.40. To the downside, 118.20 is now the critical point; a violation there would signal the first earnest correction to 116.75."
EURO/YEN: "The current objective remains 142.55/65 yen. Thursday's neutral session had no implications for the near-term outlook. We therefore leave the risk-limit to the bullish view at 139.30.
This is not a particularly solid support, but it is the only nearby point of any significance. To the upside, first flimsy resistance stands at 140.95; better offers are higher at 141.55."
STERLING/DOLLAR: "On the second attempt, cable overtook the former $1.7260 hurdle as feared. However, the rally did not go too far: the price got stuck 20-pips higher and then fell back to the current level. Resistance is now harder to find - we suggest $1.7310 and $1.7495.
But we still maintain that any rally will be short-lived and be followed by fresh declines to the year's $1.7075 low. In case of an immediate sell-off below $1.7150, we would open the downside immediately to $1.6830."
EURO/DOLLAR: "Survived a test of lower support yesterday below $1.1780, and remains supported in the short term, even if the medium-term picture shows strong resistance in the $1.1870/$1.1900 zone.
That last area needs to fall if we are to see a strong reversal higher - the preferred scenario. A fall through $1.1730, on the other hand, would dash any short-term hopes of a further rally and have us focusing on the bottom of the range again at $1.1640 and possibly beyond."
STERLING/DOLLAR: "Appears supported for the short term in the $1.7180/$1.7200 area and could make a move higher toward the $1.7300/50 zone of resistance which keeps the pair in the bearish trend. A fall through $1.7100 could bring on a sequence of further drops toward $1.6900."
DOLLAR/YEN: "Broke resistance overnight and vaulted back in the higher range, suggesting a try at the 119.55 yen top may unfold, with possible spill-over toward the psychologically significant 120.00 area. A move back through 118.50/60 is needed to re-engage any bearish hopes."
Currency bid prices at 9:53 am EST (1453 GMT). All data taken from Reuters calculated from the levels at 4:30 pm (2130 GMT) in the previous New York session.
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