The USD/JPY is experiencing some solid support as bulls put up a fight around our 97.59 level. Economic recovery hopefuls aren't so eager to give up on their vision, and are doing what they can to prevent a retraction below our key 1st tier downtrend line.

Therefore, even though the USD/JPY is trading below our 1st tier uptrend line, the possibility of the currency pair continuing its battle with 100 isn't lost. That being said, despite the strong defense by the bulls, the USD/JPY should ultimately follow its positive correlation with U. S. equities like the rest of the major dollar pairs.

The Cable is returning some of yesterday's gains after deflecting off the inflection point of our 1st tier downtrend and 2nd tier uptrend lines. Today's weakness comes in reaction to a weaker than expected number from the CBI regarding its expectation for industrial orders.

Investors didn't like too much of what the CBI's chancellor had to say yesterday concerning Britain's new budget and the health of the nation's economy. Though the GBP/USD managed to fight back above the psychological 1.45 level, the downtrend is still playing a lead role in today's action.

The EUR/USD is rallying slightly, awakening from its consolidative slumber earlier in the week. The currency pair hopped above our 2nd tier downtrend line, but is having difficulties with our 3rd tier uptrend line. Therefore, we're cautiously optimistic.

However, the EUR/USD has climbed over the highly psychological 1.30 level. The relative strength in the Euro comes after all of the manufacturing and services PMI data beat estimates. Though the number all indicate contraction, at least an upward swing in momentum is forming.

If the currency pair can sustain gains from present levels, then it may have something worthwhile to build from.

Gold is overcoming the opposing downward forces and is fighting with April 15 highs and the key psychological $900/oz level. The recovery in the precious metal is pretty incredible and the rally could really take off should gold climb comfortably above $900/oz.

The negative correlation with U. S. equities is in full swing and the precious metal is trading above our 3rd tier downtrend line after weaker than expected existing home sales and weekly unemployment claims. However, we don't expect bears to let gold get past $900/oz so easily.