Archived IMT (2009.02.25)

Worse than expected US existing home sales encourage traders to shift back to sell mode. With USDJPY having failed beyond the 97.20 resistance, the pulback is expected to be modest, leading towards 96.50, but support seen holding at 95.80. A better alternative to buy yen is against CAD, as the cross is seen heading towards 76.20 and 75.70. GBPUSD seen the preferred sell than EURUSD as this is cogently seen in the rallying EURGBP pair, which is reaching its highest in a week. Upside target 0.8980. Subsequent upside capped at 0.9050.