With the rising number of modulation types used in multi-user and multi-service digital communication systems, the need to find efficient methods for their discrimination in the presence of noise has become increasingly important. Here, we present a new approach based on a recently developed pattern recognition method previously applied to word spotting problems in binary images [ 11. In this approach, a large number of spatial moments are arranged in a symmetric positive definite matrix for which eigendecomposition and noise subspace processing methods can be applied. The resultant denoised moment matrix has entries which are used in place of the raw moments for improved pattern classification. In this paper, we generalize the moment matrix technique to grey scale images and apply the technique to discrimination between M-ary PSK and QAM constellations in signal space. Invariance to unknown phase angle and signal amplitude is achieved by representing the in-phase and quadrature components of the signal in the complex plane, and computing joint moments of normalized magnitude and phase components.