Technical analysis of GBP/JPY for January 18, 2016 Market Analysis Review

GBP/JPY is expected to trade in a lower range. The pair is reversing down and stays below its key resistance at 168.25. Meanwhile, the relative strength index lacks upward momentum. The first target to the downside is set at the horizontal support and overlap at 166.20. A breakout below this level would open the way to further weakness toward 165.45.

Trading Recommendations:

The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 166.20. A break of that target will move the pair further downwards to 165.45. The pivot point stands at 168.25. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 169 and the second target at 169.85.

Resistance levels: 169, 169.85, 170.45

Support levels: 166.20, 165.45, 165

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Technical analysis of EUR/USD for Januari 18, 2016 Market Analysis Review

When the European market opens, some economic news on the Italian Trade Balance is due to be released. The US will not publish any economic data for today. So amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Breakout BUY Level: 1.0964.

Strong Resistance:1.0958.

Original Resistance: 1.0947.

Inner Sell Area: 1.0936.

Target Inner Area: 1.0911.

Inner Buy Area: 1.0886.

Original Support: 1.0875.

Strong Support: 1.0864.

Breakout SELL Level: 1.0858.

Disclaimer: Trading Forex (foreign exchange) on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

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Technical analysis of USD/JPY for Januari 18, 2016 Market Analysis Review

In Asia, Japan will release data on the Tertiary Industry Activity m/m and Revised Industrial Production m/m, but the US will not release any economic data for today. So, there is a strong probability the USD/JPY pair will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Resistance. 3: 117.81.

Resistance. 2: 117.58.

Resistance. 1: 117.35.

Support. 1: 117.07.

Support. 2: 116.84.

Support. 3: 116.61.

Disclaimer: Trading Forex (foreign exchange) on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

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For detail explanation and best discovery on daily market trends and news you may visit via Technical analysis of USD/JPY for Januari 18, 2016 . Thanks for your support.

Daily analysis of major pairs for January 18, 2016 Market Analysis Review

EUR/USD: The condition affecting the EUR/USD is quite similar to the condition affecting the USD/CHF pair. So, these two pairs must be closely watched. Just like the latter, the bias on the former is also neutral in the near term.

USD/CHF: The bias on this pair is neutral in the near-term because the pair has not made any strong directional movement in recent times. There are short-term upswings and downswings in the market, but a predictable directional movement is anticipated this week or next week, which would most probably favor bears.

GBP/USD: The GBP/USD pair is one of the strongest trending currency trading instruments among the majors. The bias on the instrument is bearish and it is possible that the price would continue going downwards, reaching the accumulation territories of 1.4200 and 1.4150 this week. This bias would be valid until there is a bullish reversal of at least 300 pips.

USD/JPY: USD/JPY moved sideways in the most part of last week, though the price went further downwards on Friday, emphasizing the extant bearish outlook on the market (just as the case is on most other JPY pairs). It is likely that the price would continue trending further downwards this week, reaching the demand levels at 116.00 and 115.50.

EUR/JPY: In contrast to what happened two weeks ago, this cross simply moved sideways last week. There would soon be a breakout this week or next week, which would be determined by the conditions affecting the EUR. So, it is rational to say that movement on the EUR/JPY cross would be determined by whatever happens to the EUR, and as a result, we may see a movement which is contrary to what other JPY pairs.

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Daily analysis of USDX for January 18, 2016 Market Analysis Review

The USDX is still showing some declines resisting in some way to advance in the bullish bias, which is presented on an overall basis. However, the index remains trading above the support level of 98.79 and the 200 SMA in the H1 chart. So, this outlook cannot be fully discarded yet as the USDX could test the resistance level of 99.22 in order to do another rally towards the level of 99.49.

H1 chart's resistance levels: 99.22 / 99.49

H1 chart's support levels: 98.79 / 98.39

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the US dollar index breaks with a bullish candlestick; the resistance level is seen at 99.22, take profit is at 99.49, and stop loss is at 98.94.

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Daily analysis of GBP/USD for January 18, 2016 Market Analysis Review

On the H1 chart, GBP/USD is still working so well in our bearish outlook presented several articles ago, as the pair is trying to extend its decline towards the support zone of 1.4198. A breakout below there will expose the pair to test the level of 1.4080. The current structure is calling for more declines, but the MACD indicator starts to show oversold conditions.

H1 chart's resistance levels: 1.4309 / 1.4373

H1 chart's support levels: 1.4198 / 1.4080

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the GBP/USD pair breaks a bearish candlestick; the support level is seen at 1.4198, take profit is at 1.4080, and stop loss is at 1.4309.

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Elliott wave analysis of EUR/NZD for January 18, 2016 Market Analysis Review

Wave summary:

We have seen an expected breakout above the base channel resistance line near 1.6750, which now should act as support for upside acceleration towards 1.7205 and 1.7641.

In the longer term, we continue to look for even more upside pressure towards 1.8020 as the next important long-term resistance.

Trading recommendation:

We are long EUR from 1.5810 and will move our stop higher to 1.6640. If you are not long EUR yet, then buy near 1.6750 and place your stop at 1.6640.

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Elliott wave analysis of EUR/JPY for January 18, 2016 Market Analysis Review

Wave summary:

The triangle continues to unfold as we expected. In the short term, we should see support at 127.28 protecting the downside for another small rally towards 128.50 before the thrust downside takes us lower to 126.05 and 125.45.

In the long term, I would be looking for even more downside pressure towards 123.57 and the next major downside target.

Trading recommendation:

We are short EUR from 130.95 with stop placed at 129.50. If you are not short yet, then sell near 128.50 or upon a break below support at 127.28 and place your stop order at 129.50.

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