The EUR/JPY pair traded a bit lower on Wednesday. The bias was bearish so far and the demand zone at 131.50 is about to be tested again (the demand zone was tested last week); it could even be breached to the downside. Generally, the market is consolidating.
The market simply ranged for the most part of this week with neither significant bullish movement, nor serious bearish movement. There was a slightly bullish movement on Thursday, but the outlook on the market remains bearish. Unless the market goes up by 150 pips, it would still be assumed that the market is bearish.
There was no serious upwards or downwards movements in the EUR/USD pair in the entire last week. For the year 2015, we saw the tightest sideways movements on most majors, each of which did not move upwards or downwards by 50 pips in certain cases. Although the equilibrium movement could continue, we expect rising market momentum to take place soon.
This pair moved sideways throughout last week shrugging off all the fundamental data that could impact it. Last week, most major pairs shrugged off most of the fundamental figures, which were supposed to affect them (except the employment figures coming out of Australia, which affected the AUD pairs). The current consolidation movement could continue until there is a breakout, which would most probably favor the current bullish bias.
After testing the accumulation territory around 1.5050, the price gradually bounced upwards by 200 pips, reaching the distribution territory at 1.5250. As long as the distribution territory at 1.5350 is not broken to the upside, the recent bearish bias would not be violated. It is probable that the bearish journey would be resumed.
In the context of an uptrend, this pair simply consolidated to the downside. The price tested the supply level of 123.50 and got corrected lower, testing the demand level at 122.50. It is possible that the pair would still go further upwards; possibly breaking the supply level of 123.50 to the upside (for it is possible for the JPY pairs to assume a bullish journey before the end of this month).
Last week, the EUR/JPY pair merely moved in a choppy sideways manner. The price zigzagged between the demand zone of 131.50 and the supply zone of 133.00. This week, the EUR/JPY pair might find it difficult to rally significantly, especially as long as the EUR is weak.
Last week, the EUR/JPY pair merely moved in a choppy sideways manner. The price zigzagged between the demand zone of 131.50 and the supply zone of 133.00. This week, the EUR/JPY pair might find it difficult to rally significantly, especially as long as the EUR is weak.
After testing the accumulation territory around 1.5050, the price gradually bounced upwards by 200 pips, reaching the distribution territory at 1.5250. As long as the distribution territory at 1.5350 is not broken to the upside, the recent bearish bias would not be violated. It is probable that the bearish journey would be resumed.
In the context of an uptrend, this pair simply consolidated to the downside. The price tested the supply level of 123.50 and got corrected lower, testing the demand level at 122.50. It is possible that the pair would still go further upwards; possibly breaking the supply level of 123.50 to the upside (for it is possible for the JPY pairs to assume a bullish journey before the end of this month).
