* USD/JPY rose to a 19-day high of 121.79 following poor Japanese economic data. First quarter GDP came in weaker than expected, raising fears the economy is facing further deflationary pressures. The JPY lost ground following the release of data that showed GDP shrank 0.2% in Q1, for an annualized 0.8% fall, below analysts' expectations of 0.2% growth for the quarter and following a revised 0.6% increase in Q4. The decline was blamed on a fall in corporate capital spending and exports, which dropped in the face of the global slowdown.
The economy grew 0.9% in the financial year ended March 31, falling short of the government's goal of 1.2% growth.
Heavy buying by European names brought USD/JPY up from 120.88 to 121.66 for the session.
The outlook is slightly bullish.

Support: 121.09 (20-day moving average), 121.05 (Gann 50-point pivot; targets: 120.55/121.55), 120.86 (overnight low), 119.65 (Gann 50-point pivot; targets: 119.15/120.15), 119.00 (38.2% Fibonacci retracement level of the August 1998-December 1999 downtrend), 118.30 (June 1 trough; 3-month low), 118.25 (Gann 50-point pivot; targets: 117.75/118.75).
Resistance: 121.79 (overnight high), 122.45 (60-day moving average), 122.50 > (Gann 50-point pivot; targets: 122.00/123.00), 124.00 (Gann 50-point pivot; targets: 123.50/124.50), 124.05 (May 16 peak), 124.35 (April 27 peak), 125.50 (Gann 50-point pivot; targets: 125.00/126.00), 126.84 (April 2 high; 29-month high).

* EUR/USD blipped briefly to 0.8538 but has since ceded this ground to drop to 0.8485. EUR/GBP has also weakened from 0.6163 to 0.6123. The EUR had been propped up coming in the European morning by heavy buying of the EUR/JPY cross and EUR/GBP strength in the aftermath of the UK election.
A consortium of leading research institutes in Europe have produced an indicator which suggests growth in the euro-zone this year will be lower than the 2.0-2.5% range the ECB has forecast. The research commissioned by Financial Times, FT Deutschland and Les Echos was published in today's FT. In what appears to be grim news for the EUR, the research suggests growth for Q2 of this year in the euro zone will be 1.8%, dropping to 1.4% in Q3. Overall, the consortium says that on the basis of the indicator, real GDP will most likely increase by less than 2.0% in 2001 on average. The outlook is mixed to slightly bearish, with traders looking to break below the 6-month low of 0.8225.

Support: 0.8481 (overnight low), 0.8425 (June 5 low; 6-month low), 0.8372 (Nov. 23 low), 0.8327 (channel line declining since Jan. 2), 0.8245 (1.382% Fibonacci extension level the Jan. 6-May 4, 19 downtrend; target of fifth Elliott wave), 0.8228 (Oct. 26 low; lifetime low).
Resistance: 0.8540 (overnight high), 0.8604 (20-day moving average), 0.8790 (38.2% Fibonacci retracement level of the June-October downtrend), 0.8848 (61.8% Fibonacci retracement level of the Nov. 27-Jan. 5 uptrend), 0.8893 (200-day moving average).

* EUR/JPY if off a 13-day high of 103.86 reached on the back of heavy buying from U.S. names. The cross rose from 102.68 to 103.86 but has since fell back to 103.25-35. The outlook is mixed.

Support: 102.74 (200-day moving average), 102.63 (overnight low), 99.85 (June 1 low; 5 1/2-month low), 97.22 (Dec. 12 trough).
Resistance: 103.86 (overnight high), 104.20 (20-day moving average), 104.48 (May 29 high), 105.80 (38.2% Fibonacci retracement level of May 1999-October 2000 downtrend), 107.88 (60-day moving average), 108.10 (100-day moving average).

* GBP/USD took a breather after plunging Friday to a a 15 1/2-year low of 1.3778. The U.K. chancellor was reported to have said in a UK Sunday newspaper that he would not adopt "fast track" approach to GBP entry to the EMU.
The outlook is mixed to slightly bullish, due to risk of short covering.

Support: 1.3820 (overnight low), 1.3778 (June 8 low; 15 1/2-year low), 1.3578 (support line declining since January), 1.3660 (February 1986 trough).
Resistance: 1.3875 (overnight high), 1.4162 (20-day moving average), 1.4268 (60-day moving average), 1.4378 (100-day moving average).