The USD/JPY ended its
equilibrium phase of several weeks as it plunged massively last week. Several
previously demand levels are now supply levels, and the price is close to the
demand level at 121.50, which could be breached easily in case the current
selling pressure continues. This is a long awaited bearish signal – it may
continue to hold this week.
EUR/USD: This currency trading instrument is now one of
the strongest among the majors. From around the support line at 1.1050, the
price skyrocketed by more than 320 pips, closing at 1.1384. The resistance line
at 1.1400 is an easy target for the bulls this week. Even it would be breached
to the upside.
USD/CHF: The
USD/CHF has yielded to gravity; diving by 300 pips. There are resistance levels
at 0.9550 and 0.9600, which should do a good job in halting bullish attempts
this week. There are also support levels at 0.9450 and 0.9400, which would be
targeted by the bears. Since the USD is weak and the CHF is very strong, it is
reasonable to conclude that the current bearish movement may continue for a
while.
GBP/USD: This is a good example of cut-throat battles
between the bull and the bear. This pair ought to go upwards in a positive
correlation mode with the EUR/USD: it has gone above the recalcitrant
accumulation territory at 1.5650. There is a fresh battle at the distribution
territory of 1.5700, but the bull should be victorious though it is not an easy
thing.
USD/JPY: The USD/JPY ended its equilibrium phase of
several weeks as it plunged massively last week. Several previously demand
levels are now supply levels, and the price is close to the demand level at
121.50, which could be breached easily in case the current selling pressure
continues. This is a long awaited bearish signal – it may continue to hold this
week.
EUR/JPY: There is a neat Bullish Confirmation Pattern
in this market and there is a tendency that the price may continue to journey
upwards, especially in the face of the strength of the Euro. The initial losses
seen by the bulls last week have now been recovered and the price might even go
higher.
Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group
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