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USD/JPY Falls As Anticipated; USD/CHF Collapses Sharply

Published 02/11/2016, 05:19 AM
Updated 07/09/2023, 06:31 AM

USD/JPY

The USD/JPY has fallen as anticipated, following the break below the neckline of the huge head and shoulders top pattern.

USD/JPY Daily Chart

The pair has cleared 114.20, which accelerated the bearishness and also bears have cleared the important support-turned into resistance- at 113.60.

We see 110.50 as a next target for the collapse seen on USD/JPY, while 113.60 could act as a ceiling for intraday traders.

RSI may cause fluctuation, but we don’t think it will change the direction.

Support: 112.20-111.65-111.05

Resistance: 113.00-113.60-114.20

Direction: Bearish

USD/CHF

The USD/CHF pair has failed to maintain levels above 0.9795-0.9805 where it collapsed sharply ahead of the Asian session yesterday.

USD/CHF Daily Chart

The pair may resume its downside actions based on stability below the aforementioned resistance, but we may see fluctuation before that to relieve momentum indicators.

On the downside, coming below 0.9670 will trigger a new strong downside wave.

Support: 0.9700-0.9675-0.9630

Resistance: 0.9785-0.9805-0.9855

Direction: Bearish

EUR/USD

We have witnessed strong fluctuation during the Asian session where EUR/USD succeeded in moving above 78.6% Fibonacci at 1.1285, which is positive factor.

EUR/USD H4 Chart

However, we can see negative divergence on RSI14 and that prevents the pair from soaring, but we will be bullish today as far as 1.1220 holds.

A break below 1.1220 will activate the divergence, while clearing 1.1337 will be positive.

Support: 1.1220 – 1.1170 – 1.1120

Resistance: 1.1310 –1.1385 – 1.1430

Direction: Bullish

GBP/USD

GBP/USD has stabilized above 38.2% Fibonacci at 1.4525, which is positive according to Fibonacci rules.

GBP/USD H4 Chart

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Also, the pair stabilizes above moving averages within the ascending channel and thus, the bullishness is favored as far as 1.4525 hold, while breaching 1.4410 will negate.

Additionally, 1.4480 should provide bulls with support.

Support: 1.4525 – 1.4480 – 1.4410

Resistance: 1.4585 – 1.4600 – 1.4660

Direction: Bullish attempt

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