European Majors Jump on Greek Austerity Deal Near. A Look at EUR/USD, GBP/USD, EUR/JPY, GBP/JPY

European majors jumps sharply in US session on talk that Greek government is finally drafting a document on austerity measures for approval from political leaders, which is seen as one of the important steps to secure the EUR 130b second bailout from EU/IMF to avoid disorderly default in March. It's speculated that the accord could be confirmed as early as this evening in Greece. That should include further spending cut of 1.5% of GDP this year as well as reforms in labor and banking. It's also reported that Eurozone finance ministers would meet on Tuesday to discuss Greece's bailout, after the meeting is being pushed back and forth.

EUR/USD breached recent resistance at 1.3233 while GBP/USD also broke 1.5882. EUR/JPY is set to take on 120.20 resistance while GBP/JPY has already taken out 122.04. Dollar index resumed recent fall from 81.78 and reached as low as 78.48 so far. Risk sentiments were also given a boost as DOW extended recent high and break above 12876 level again. Gold rode on dollar weakness and jumped more than 20 to as high as 1750.3. However, note that firstly, DOW's rally is not too convincing so far, as we don't see follow through buying above 12876 yet. Momentum in EUR/USD is also a bit unconvincing. We'll stay cautious even though more downside in dollar in now in favor.

Here's a quick look at some pairs.

EUR/USD's break of 1.3233 indicates that recent rebound from 1.2625 has resumed. Near term outlook will stay cautiously bullish as long as 1.3088 support holds and further rally could now be seen towards 61.8% retracement of 1.4246 to 1.2625 at 1.3627.

GBP/USD's break of 1.5882 confirms resumption of rebound from 1.5234. Near term outlook will now stay bullish as long as 1.5729 support holds. Current rise should now target 1.6165 key cluster resistance (61.8% retracement of 1.6746 to 1.5234 at 1.6168) next.

EUR/JPY's strong break of 100.88 minor resistance flips bias back to the upside for 102.20 resistance. Break will confirm resumption of whole rebound from 97.03 and should target 100% projection of 97.03 to 102.20 from 99.24 at 104.41. We'll stay bullish as long as 100.36 minor support holds.

GBP/JPY's break of 122.04 confirms resumption of whole rise from 117.29. We'd stay bullish as long as 120.98 minor support holds. Current rise should target 100% projection of 117.29 to 122.04 from 119.58 at 124.33 next.