The USD/JPY pair has now moved above the demand level of 122.50. It is highly probable that the price would reach the supply level of 123.50; and in case this happens, the bullish signal will become stronger in the market. Further bullish movement is expected in the market.
In spite of the bullish attempts, there is not yet a buy signal in the chart. Though, this is a threat to the Bullish Confirmation Pattern in the market, because the RSI period 14 is already above the level of 50; but the EMA 11 is yet to cross the EMA 56 to the upside. An upwards movement of at least 200 pips is needed for the recent bearish bias to become completely illogical.
The EUR/USD pair is only making faint bullish attempts, which would not render the current bearish outlook invalid until the price moves above the resistance line at 1.0700 (which would require a serious bullish breakout). Until that happens, the market will remain bearish.
This pair has experienced a pullback of over 100 pips this week testing the support level of 1.0200. As long as the price is above the great psychological level of 1.0000, it would be safe to assume that the extant bullish bias is valid. As a result of this, it is possible that the price could assume another leg of upwards effort. Some fundamental figures are expected today and they are supposed to have an impact on the market.
As it was forecasted earlier this week, the initial rally that took place on the cable proved to be a good opportunity to go short. From the distribution territory at 1.5100, which was tested by the recent upwards bounce, the price dropped by 200 pips to test the accumulation territory of 1.4900. We expected the price to move below the accumulation territory.
The bullish signal on the USD/JPY pair has become quite visible in solidarity with the recent bullishness in the market. The price is above the EMA 56 and the RSI period 14 is above the level of 50. Since it is expected that bulls would keep on striving to maintain the US dollar stamina further northward movement is probable.
The near-term rally on this cross posed a threat to the recent Bearish Confirmation Pattern in the chart. A movement of at least 150 pips would be the last straw that could break the camel's back; which means it could lead to a new bullish outlook.
In a surprise move, the EUR/USD pair broke out of its recent sideways movement in the context of a downtrend, going upwards by 450 pips. There is a now a Bullish Confirmation Pattern in the market, which has overturned the recent bearish bias abruptly. More fundamental figures are expected today and they could have impact on the markets.
