The USD/JPY trended
upwards nicely last week, thus ending the recent protracted equilibrium phase
in the market. Since October 15, 2015, the price has moved upwards by roughly
350 pips, almost reaching the supply level at 121.50. Further northward
movement is anticipated this week, which may enable the price to reach the
resistance levels at 122.00 and 122.50.
EUR/USD: The EUR/USD is now in a strong bearish mode –
having fallen by 350 pips last week. The bias is now bearish and the price is
supposed to go further south this week. But the price needs to break the
psychological support line at 1.1000 to the downside. While this might look
like a hard job for the bears, it is attainable.
USD/CHF: The
movement on the USD/CHF is largely dictated by the movement on the EUR/USD; and
therefore, the strength in the former was transferred indirectly by the
weakness in the latter. From the support level at 0.9500, the price moved
upwards by 300 pips, now very close to the resistance level at 0.9800. In case
the price goes above that resistance level (which is very much likely), the next
target for the bulls would be another resistance level at 0.9900.
GBP/USD: The Cable was unable to make any meaningful
rally last week because the bulls met a stubborn impediment at the distribution
territory at 1.5500. In fact, the price simply went down last week, leading to
a “sell” signal in the market. The price needs to go further down so that the
“sell” signal could be valid. The Cable might be under selling pressure as long
as the EUR/USD itself is weak. They are both positively correlated.
USD/JPY: The USD/JPY trended
upwards nicely last week, thus ending the recent protracted equilibrium phase
in the market. Since October 15, 2015, the price has moved upwards by roughly
350 pips, almost reaching the supply level at 121.50. Further northward movement
is anticipated this week, which may enable the price to reach the resistance
levels at 122.00 and 122.50.
EUR/JPY: Due to the sudden
weakness in the EUR, the EUR/JPY cross also fell rapidly in the last few days
of last week. There is now a Bearish Confirmation Pattern in the market, which
would most probably continue as long as the EUR is weak. The only factor that
can reverse this is a situation is which the YEN becomes weaker than the EUR.
Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group
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