Archived IMT (2008.10.14)

USDJPY's 3 yen approaches the 103.00 resistance, which is the 305 retracement of the decline from the August high. Further gains are seen dissipating near the 103.50 obstacle, which marks the lows of September 16 and 29. Having noted that the accumulation of risk appetite may be largely caused by forced short-term buying in a bear market, care is urged as we attain key levels of 103.50 and 104.28. GBPJPY attempts to retest the 181.20s for a breach of the important 182 yen resistance, marked by the trend line extending from the Sep 30 high, and coinciding with the October 30 high. A breach of 182.30 may trigger a reverse head and shoulder pattern, which could allow the rally to escalate towards 184.60.