It is still sensible to consider this currency trading instrument is on the bull market, though there was no much movement on Monday. The price action in the market reveals that bulls are going on pushing the price further north.
Just like EUR/USD, EUR/JPY cross also moved upward on Monday. This movement of 120 pips was strong enough to lead to a strong Bullish Confirmation Pattern in the market. The price may attain the supply zone at 137.50 (and later, another supply zone at 138.00). There cannot be a threat to the bullish bias as long as the price stays above the demand zone at 136.00.
There is now an unambiguous bullish signal on this pair, since positive news from the Eurozone has fuelled the pair. Today or tomorrow, it is possible for bulls to attain the resistance lines at 1.1100 and 1.1150. There are support lines at 1.0950 and 1.0900, which should obstruct bearish attempts along the way.
It is intriguing to see that both USD/CHF and EUR/USD are trying to go upwards at the same time. According to their nature, the two pairs ought to go in opposite directions. The resistance level at 0.9900 is now being tested. Unless the USD loses stamina, the resistance level would be breached to the upside.
Although the cable moved upwards strongly before the current sideways movement, the upwards attempt has not rendered the recent bearish outlook completely invalid. The distribution territory at 1.5600 is being tested repeatedly. In case it is breached to the upside, the price could go towards another distribution territory at 1.5650. Should this happen, it would lead to a new bullish signal.
Interestingly, the USD/JPY pair is also moving upwards, but not as strongly as the EUR/JPY pair. The price has moved above the EMA 56 and the RSI period 14 is above the level 50. The demand level at 125.00 has already been overcome, the next target for bulls is the supply level at 125.50.
The EUR/JPY pair has moved upwards by over 200 pips this week. The price is currently trading above the demand zone at 138.00, targeting the supply zone at 139.00. There is now a strong Bullish Confirmation Pattern on the chart. Unless the yen gains a significant amount of stamina, the cross would continue moving upwards.
This pair is now one of the strongest among the majors, having moved upwards by 250 pips this week. The resistance line at 1.1200 has been tested and there is a high possibility that it might be breached to the upside. In case it happens, the price might target the resistance line at 1.1250.
As it was forecasted, the USD/CHF pair soon went into an opposite direction with the EUR/USD pair. Owing to the weakness in the USD, USD/CHF dropped by 200 pips yesterday before the current slightly upward bounce. The price could go further south: a movement below the support level at 0.9650 would lead to a clean Bearish Confirmation Pattern on the chart.
As it was forecasted yesterday, the cable was able to move higher and this has caused a bullish signal in the market. The price is above the EMA 11, which is in turn, above the EMA 56. The RSI period 14 is also above the level 50. In case the distribution territory at 1.5650 (which has already been tested) is breached to the upside, the next target for bulls would be the distribution territory at 1.5700.
