The EUR/JPY is a neutral market, and the neutrality continued last week.
Bull made an effort to push price above the supply zone at 131.00, but the
effort proved abortive as price experienced some weakness in the last few days
of last week (emphasizing the neutrality in the market). On factor preventing a
serious pullback in this market is the stamina in EUR. Should EUR loses
strength, there would be a pullback on the EUR/JPY.
EUR/USD: This pair went upwards, testing the
resistance line at 1.1900 and then dropping below the resistance line at
1.1800. The drop in the context of an uptrend may end up giving a nice
opportunity to buy long at better prices. The outlook on EUR pairs is bullish
for this week, and price could go upwards from here, testing the resistance
line at 1.1800, 1.1850 and 1.1900.
USD/CHF: There remains a
bullish signal on the USD/CHF, although price consolidated last week. The
resistance level at 0.9750 has been tested and it could be tested again this
week, but it is unlikely that it would be breached to the upside. The USD/CHF
was able to remain bullish as a result of the weakness in CHF, which may be
reversed this week. The outlook on the CHF is bullish for the week, and the
USD/CHF may experience a downward movement in case CHF becomes strong.
GBP/USD: The GBP/USD was able to go upwards
because of its positive correlation with the EUR/USD, which is strong in its
own right. Price made some bullish attempt, which was rendered invalid as it
tested the distribution territory at 1.3250 and then got rejected as price
became weak on Thursday and Friday. Further weakness is a possibility because
the outlook on GBP pair is bearish for this week. The accumulation territories
at 1.3000 and 1.2950 could be tested.
USD/JPY: There is a huge
Bearish Confirmation Pattern on the USD/JPY. Since July 11, price has dropped
by 420 pips; plus the shallow bullish attempt that was seen at the end of last
week pales into insignificance when compared to the overall bearish bias. The
outlook on certain JPY pairs is bearish this week, and this could cause the
demand level at 110.50 and 110.00 to be tested. The demand level at 110.00 was
tested last week.
EUR/JPY: The EUR/JPY is a
neutral market, and the neutrality continued last week. Bull made an effort to
push price above the supply zone at 131.00, but the effort proved abortive as
price experienced some weakness in the last few days of last week (emphasizing
the neutrality in the market). On factor preventing a serious pullback in this
market is the stamina in EUR. Should EUR loses strength, there would be a
pullback on the EUR/JPY.
Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group
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