After the EUR/JPY cross traded sideways for a few days, bears pushed the price lower. The price is now below the supply zone of 133.00, with a potential to go further below.
This pair is making attempts to go above the important resistance line at 1.0000. With the ongoing buying pressure observed in the market, the price could go above the resistance line this week. One thing should be noted, we may witness some weakness in the EUR/USD pair before the end of this month.
The USD/CHF pair faces two challenges: the euro is strong and the Swiss franc could potentially rally before the Christmas Eve. Nonetheless, the USD might rally against other currencies. The price moved a bit lower on Monday, and this could be sustained today
This currency trading instrument came down by 100 pips on Monday, though there is no threat to nascent bullish signals in the market. The price would need to go below the accumulation territory of 1.5000 before it can be said that the bullish bias is over. Unless that happens, the price is likely to go upwards again. Therefore, any shallow pullbacks like this could potentially be a "buy" signal.
The USD/JPY pair traded lower on Monday underlining the ongoing weakness in the market. The demand level of 120.50 was tested and it could be tested again. In case that demand level is breached to the downside, the next target would be the demand level at 120.00. Serious weakness in the yen is needed for the bearish trend to reverse
The EUR/JPY pair merely consolidated on Monday. There was nothing significant. The price can continue trading lower, which may threaten the bullish bias. This is called a consolidation to the downside; the yen loses stamina.
After testing the resistance line at 1.1050, this currency trading instrument got corrected to the downside. Nevertheless, this could be seen as a mere correction in the context of an uptrend, because the market should experience a pullback of at least 200 pips before it could be assumed that an uptrend is over.
The USD/CHF pair faces two challenges: the euro is strong and the Swiss franc could potentially rally before the Christmas Eve. Nonetheless, the USD might rally against other currencies. Any rallies seen in this market should be taken as short-selling signals, because the bearish outlook would be valid until the great resistance level at 1.0000 is overcome.
As it was mentioned, the GBP/USD pair generated a "sell" signal, which became the threat to the recent bullish bias. A movement below the accumulation territory of 1.5000 could result in a Bearish Confirmation Pattern, and this is something that is likely to happen.
After testing the demand level of 120.50, the USD/JPY pair moved upwards by 140 pips this week. It happened in the context of a downtrend, though the bias will turn bullish once the price goes above the supply level of 122.50. Since the outlook for JPY pairs remains bullish in December, this is very likely to occur.
