LONDON, June 18 - Following is a selection of comments from analysts on important technical developments in the foreign exchange market.
KAREN JONES, TECHNICAL ANALYST AT COMMERZBANK
* EURO/DOLLAR: "The euro has continued to rally higher. We hold a $0.8710/30 near term target, following the completion of a small base last week between $0.8570/$0.8410. Above the market the medium-term downtrend also lies at $0.8730 and while we allow for this to be tested, we also expect the market to fail here. Dips will find interim support at $0.86 ahead of $0.8570/40 and while above here immediate upside pressure is maintained. Below would disappoint for a return to $0.8485."
* DOLLAR/YEN: "The dollar eased back to the 120.85 support and rebounded strongly from here. We shall assume the market has based near-term and has in fact resumed its longer-term up-move as prices have rallied above the 122.50 pivot. Minor resistance lies at 123.50 ahead of 124.00/30 then 126.85. Nearby support lies at 122.40."