The USD/JPY pair moved largely sideways yesterday (in a choppy mode). The bearish outlook is intact and it is not sensible to go long in the market; unless the price goes above the supply level at 122.00. The price is generally expected to continue going further downwards.
The EUR/JPY cross is now volatile and the bearish effort in the chart has led to a violation of the recent bullish bias. A test of the demand zone around 136.00 could result in a strong Bearish Confirmation Pattern on the chart.
Since the EUR/USD pair reached the resistance line at 1.1700, it has come down by 380 pips. However, the bullish outlook is not invalidated yet, unless the support lines at 1.1200 and 1.1150 are breached to the downside. Without this happening, there could be some bullish attempts.
Since the USD/CHF pair tested the support level at 0.9300, it has come upwards by 250 pips. In the context of a downtrend, the price is testing the resistance level at 0.9550 now, but the downtrend cannot be invalidated unless the resistance levels at 0.9600 and 0.9650 are broken to the upside. Should price fail to do this, bears may try to push the price lower.
While in a bullish mode, the cable tested the distribution territory around 1.5800, but it could not go further than that. Bears came in and pushed the price significantly downwards. From that distribution territory, the price plunged by 350 pips, testing the accumulation territory at 1.5450. This resulted in a nice Bearish Confirmation Pattern in the chart; and further bearish journey is expected.
This currency trading instrument is currently consolidating while the downtrend still holds. The EMA 11 is below the EMA 56 and the RSI period 14 remains below the level 50. This shows that the bearish outlook is still valid. Some fundamental figures which are expected today could have an impact on this market.
There is now a 'sell' signal on this cross, for the price has dipped by 300 pips this week. This is due to the great strength in the yen (as seen on other JPY pairs): therefore long trades are not recommended right now. This is a volatile market.
Since the EUR/USD pair reached the resistance line at 1.1700, it has come down by 450 pips. A bullish outlook is now on the brink of being invalidated, especially when the price goes below the support level of 1.1150. This would result in a bearish bias.
Since the USD/CHF pair had tested the support level at 0.9300, it went upwards by 350 pips. The price hovers around the support level at 0.9650 (which is almost being breached). There is a threat to the recent bearish outlook - an upward movement by 100 pips would render the bearish outlook completely useless while ushering in a new lease of bullish outlook.
The cable fell below the distribution territories at 1.5500 and 1.5450 in line with analysts' expectations. Since the test of the distribution territory at 1.5800, the price has fallen by 400 pips. Right now, the current bearish bias shows that further southward movement is possible.
