situation on EUR/JPY is currently dicey: given the positions of the EMA 11 and
the EMA 56 in the 4-hour chart. A break above the resistance line at 1.2600
would mean the beginning of a long-term bullish outlook and a break below the
support line at 1.2400 would mean a renewal of the bearish outlook.
bearish attempt on this currency trading instrument has been rejected at the
support level at 0.9600. Price may touch the resistance level at 0.9700, and
with further bullish stamina, it could break the resistance level to the
upside, and by then, the bullish bias would have been strengthened again.
GBP/USD: The Cable has been unable to cross the
distribution territory at 1.5800, in spite of desperate attempts by the bulls.
Price has come down a bit – moving closer to the accumulation territory at
1.5700. A movement below the accumulation territory would make the bearish
Bullish Conformation Pattern in the chart is still extant and when price breaks
out, it would be to the upside, which may cause the market to test the supply
level at 119.00. One thing is necessary: price must continue going upwards so
that the bullish outlook can remain intact.
EUR/JPY: This market remains bullish and it is expected
to go further upwards when momentum returns to the market. The first target for
the bull is at the supply zone at 148.00; and with further strength, the market
can reach the supply zone at 149.00. There is a demand zone at 146.00, which is
a barrier to the bears’ interest.
The material has been provided by InstaForex Company – www.instaforex.com