The USD/JPY pair failed to break the supply level at 125.00 to the upside, and things look like going into the equilibrium phase again. However, the outlook for the pair remains bullish because the price would not be really projected as weak until the demand level at 123.5 is broken to the downside
This cross is showing a tendency to move further upwards - though the situation is delicate. Any movement above the supply zone at 137.00 would mean that the EMA 11 is already above the EMA 56; while the RSI period 14 would have gone above the level of 50. By then, there would have been a Bullish Confirmation Pattern in the market.
This is a highly volatile market, though things appear to favor bears right now. There is a good support line at 1.0850 which was tested several times last year, but without success. For the current bearish outlook to continue, the support line must be breached to the downside. This requires a strong selling pressure.
This pair is one of a few majors which moved in predictable directions last week. From the support level at 0.9650, the price went upward by roughly 200 pips, closing around the resistance level at 0.9850. There is a Bullish Confirmation Pattern in the market and the price must continue to go further north for the pattern to be valid. Therefore, the targets for this week are located at the resistance levels of 0.9900 and 0.9950. One thing can overturn this expectation - a significant weakness in the USD. It also must be noted that the US dollar is unlikely to reach parity again with the Swiss franc this month, so long trades should be handled with caution.
The GBP/USD pair went bearish last week, breaking southward out of the recent equilibrium phase. The price tested the accumulation territory at 1.5450 and later bounced upward from there. The bias on the market is bearish and it is possible that the accumulation territory would be tested again; it may even be breached to the downside.
There was an end to the protracted sideways direction on this currency trading instrument as the price broke upwards, moving upwards by 100 pips (testing the supply level at 125.00). Further bullish effort was rejected at that supply level and price got corrected to the downside. Since the outlook on JPY pairs is bearish, there is a possibility that the demand level at 123.50 would be tested this week.
The EUR/JPY cross does not currently look 'sexy' (attractive). Since there is no clear sign of victory between the bull and the bear, it is OK to stay away from the market until a clear trend will appear as opposed to a choppy movement.
This pair traded upwards on Monday, creating a 'buy' signal in the market. The price is currently above the support line at 1.1000, and it could reach the resistance line at 1.1100. The bullish outlook would be logical as long as the USD is weak.
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. Therefore, the USD/CHF pair could move south today, in case the EUR/USD pair continues to go further north.
The GBP/USD pair went upwards by over 100 pips on Monday, testing the distribution territory at 1.5600. In case the distribution territory is overcome, the next target would be the distribution territory at 1.5700. On the other hand, there are accumulation territories at 1.5550 and 1.5500.
