Daily analysis of major pairs for January 16, 2017

The USD/JPY is now in a bearish mode. Price moved downwards significantly last week, reaching the demand level at 114.00. Although there is an upwards bounce in the market, the demand level would be tested again, very soon. The market is expected to continue going downwards this week.

EUR/USD:  The EUR/USD went upwards seriously last week, resulting in a Bullish Confirmation Pattern in the market. Price topped at 1.0684, and it could still go further than that.  Although the market is quite choppy, further upwards movement is anticipated and the resistance lines at 0.0700, 0.0750 and 0.0800 would be tested this week.

USD/CHF:  The USD/CHF went downwards seriously last week, resulting in a Bearish Confirmation Pattern in the market. Price hit the low of 1.0042, and it could still go further than that.  Although the market is quite choppy, further downwards movement is anticipated and the support level 1.0000 could tested this week. It could also be breached to the downside, but that would require a massive selling pressure. 

GBP/USD:  This pair attempted to make some bullish movement last week – an effort that was rejected at the distribution territory at 1.2300. This shows that rallies in this market should be approached with caution and would be better taken as opportunities to sell short at better prices. The reason is because the major outlook on the market remains bearish.

USD/JPY:  The USD/JPY is now in a bearish mode. Price moved downwards significantly last week, reaching the demand level at 114.00. Although there is an upwards bounce in the market, the demand level would be tested again, very soon. The market is expected to continue going downwards this week.

EUR/JPY:  The EUR/JPY is now in a clear bearish trend. Price has gone down by 230 pips last week, and the upwards bounce that is currently happening is shallow. Further bearish movement is anticipated, which may take price towards the demand zones at 121.00, 120.50 and 120.00. 

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