General analysis about forex market: 23th January – 27th January

EURUSD technical analysis

In the last trading week the EURUSD pair remained bullish, In the earlier part of the last trading week the pair lost its uptime momentum after the pair hit the 38.2% Fibonacci level (swing high 9th November 2016 to sewing low 3rd January 2017), the pair fall after hitting the key resistance level at 1.0720, this key resistance level limit the upside run for this currency pair. The initial bias for this currency pair in the upcoming trading week is neutral. We might see some drop in that currency pair in the earlier part of the week. The pair might fall until it finds its key support level, the nearest support level for this currency is at 1.0680 level. If the pair manages to break this support level we might see a sharp fall in the chart and the pair might fall to 1.0620 level which is the next support level for this currency pair. However if the pair breach this support level then the price might drop some pips and the price might encounter the key support level at 1.0500. Since 1.0500 level is a very strong support level for this currency pair so we might see some rebound from this support area.

On the other hand, closest resistance area for this pair 1.0720 level, Many professional traders might look for a chance to enter the if price manages to break this resistance level. After that, there is not much technical resistance level to limit the upside trend so we might see a strong bullish move in the chart. The price might hit the next resistance level at 1.0815. This resistance level should hold the uptrend, if the buyer wants to take more control over sellers then they have to break that key resistance level. Overall scenario for this currency pair is bullish but we might see some sideways movement in the next trading week.

EURJPY technical analysis

The EURJPY pair falls to 120.54 in the last trading week but the pair got some support at this critical support level and the pair recovered some pips after hitting support level at 120.54.But the upside momentum is not clear on the EURJPY pair. In the next trading week, we might see some sideways movement in the earlier part of the week. But many price action professional trader might enter the market if the pair manages to break its nearest resistance level at 124.00. If price can breach this resistance level we might see a strong bullish move, a break from 124.000 level might target the 126.00 level which is the next key resistance level for this currency pair. This price level should limit the upward run and trader might see some descending retracement from this strong resistance level.  We might see some sellers enter the market and push the price down, look for any opportunity to sell the pair at this resistance level might make some solid profit.

On the downside, The EURJPY might fall to the 121.60 level which is the nearest critical support level for this currency. If the seller wants to take control from the buyer then sellers need to break this critical support level. Below 121.60 level mean more bearish momentum in the currency pair. If pair manages to breach this support level we might see a sharp fall in this currency pair. The pair might test the next support level at 120.70. If price manages to break this support level also then we might see another bearish rally in the chart and the price might test the 118.40 level which is the strong support level for this pair. Overall bias for this currency pair is bullish and we might see some bullish move in the next trading week.

USDJPY technical analysis

The USDJPY pair dropped to 112.56 in the last trading week but the pair got some support at this critical support level and the pair rebounded from this support level. Initial bias is uptrend for the next trading week. The pair might test the resistance level at 115.60, this is the upside barrier for this currency pair if pair manages to break this resistance level then we might see another bullish run in the currency market. The pair might hit the next resistance level at 116.32 which is the 61.8% (swing high 15h December 2016 to sewing low 17th January 2017) Fibonacci level for this currency pair. Many professional price action trader might enter long in the market if the pair manages to break this key resistance level. Since there are not any strong resistance level from that price level then we might see a strong bullish run. The price might target the upside resistance at 118.60 level.

On the other hand, downside support level is at 114.00 level. The pair might test this support level in the initial part of the next trading week. However if the sellers able to break this support level then we might see a sharp fall in the USDJPY market. The price might fall to the 112.00 level which is the key support level for this currency pair. Many price action professional trader might look forward to a buying opportunity in this support level. Since this is a very strong support level and longer term picture suggest an uptrend is going on so we might see a rebound from this support level. Overall bias for this currency pair is still bullish, look forward to entering long from the dip.