UBS

USDJPY aims to unlock 122.20. Our proprietary model has turned from neutral to bearish for EURUSD, keepings its focus on 1.3371, the 0.382 retracement of 1.2865-1.3683. Nearby is the 1.3368, the breakout high from early December. Initial resistance is at last Wednesday's 1.3503 high, but only a move above congestive resistance in the 1.3532 to 1.3545 area would halt downward pressures.

USDCHF maintains a bullish theme following the recent break of 1.2285, the April 9 prominent reaction high. This paves the way for gains towards the 1.2353 to 1.2357 area. This zone marks the 0.618 retracement of the 1.2575-1.1994 decline and the March 9 reaction high, respectively. Mild support is in the 1.2241 last Wednesday's low.

GBPUSD reversed higher from last week's 1.9677 trend low. Sustained gains above last week's 1.9875 previous correction high would mark a turn in the short-term bear trend from the mid-April 2.0134 high. The next resistance is the 2.0000 May 9 high. Mild support for now is at last Tuesday's 1.9772 breakout high.

USDJPY cleared resistance at the 121.65 February 22 reaction high, shifting focus to the January-February 122.10 to 122.20 double top. Congestion from 120.67 to 120.48 marks initial support. The fact that support has held suggests the recent pullback is simply corrective in nature.

AUDUSD's penetration of the 0.8230 low exposes the 0.8170 May 3 low. Only a break of this latter level would bring up the possibility of a downward resolution to the month-long sideways phase that began at 0.8396. Initial resistance is around 0.8273.

USDCAD's break of the 1.0929 May 31, 2006 multi-year trend low exposes a measured target at 1.0763. The top of congestion at 1.0908 marks initial resistance.

EURGBP stays vulnerable. The recent slide from 1.6614 in EURCHF has little support till the 1.6414 May 11 low. Only a break of this level would give us the first price confirmation of a broader trend change toward the bearish camp. Until then, note that above 1.6614, there's little resistance till the 1.6718, a synthetic high from May 1997.

EURJPY has stalled at 164.02 and this level now marks key resistance and bull trigger. The break of 162.60 support opened the door for sustained breach of the 162.20 Fibonacci support (0.618 of 161.08-164.02). The quick recovery from there is encouraging to the underlying bull trend, but only a move to a new trend high would offset vulnerability toward the 161.08 May 11 low.

EURGBP has pulled away from the top end of the two-month old trading range at 0.6868. Only a move above there or a break of the bottom of the range at 0.6747 would establish bullish trend direction for the big picture. For the short run, the bottom of the range is in view.

SEB

EUR/USD: "As the pair slipped through the $1.3437 support the neutral stance was turned into a bearish one. However the price action below $1.3437 and especially below $1.3416 hasn't been good to say the least, questioning further decline at the moment. Stronger support begins around $1.3370."

EUR/JPY: "The topside failure yielded the expected take profit selling. It also appears that we with a completed wave pattern from the March low point risks seeing further downside pressure, aiming at either 161.10 yen or 159.60 as primary
correction targets."

NZD/USD: "The pair has fallen back to the short-term key US$0.7250 reference and we view the risk of extending losses as high. A lower extension today in Europe (haven't seen one in Asia yet) is likely to drag the market down to test ... US$0.7200, not excluding further losses.

MIZUHO CORPORATE BANK

EUR/USD: "Still trying to form an interim base against the Ichimoku `cloud'. Expect more of the same today, noting that only a daily close above $1.3638 suggests this is in place."

USD/JPY: "Tiny signs of instability at these historically high levels. While above 120.70 yen we will not rule out further upside probing. However, a drop (and possibly a very sharp one) is what we currently favour. For this morning expect some work between 120.70 and 121.50. Below 120.70 should set off a sudden slip to 119.50."

GBP/USD: "Trying but to break higher needs the help of other currencies. This looks imminent -- if not today then next week. Today we should again probe the top of the flag' formation since mid-April. A weekly close above $1.9900 should turn momentum clearly bullish."

EUR/JPY: "Looking a little `tired' but not exactly keeling over. We continue with a very cautious stance and favour a decent bout of correction and consolidation over the next month or two. For today expect a test of the 26-day moving average at 162.13 yen and the trendline at 162.00. A sustained break below here should set off a slide to the top of the Ichimoku `cloud'."