USD/JPY Weekly Outlook

The recovery in USD/JPY last week suggests that rebound from 116.13 is still in progress. Initial focus will be on 121.62 resistance this week. Break will target 100% projection of 116.13 to 121.62 from 118.58 at 124.01. We'll be cautious on strong resistance from there to bring reversal. On the downside, break of 118.58 will turn focus back to 116.13 support instead.

GBP/USD Weekly Outlook

The strong rebound in GBP/USD last week suggests that corrective decline from 1.5929 could have completed with three waves down to 1.5164 already. Initial bias remains on the upside this week for 1.5817 resistance first. The rise from 1.4565 might extend through 1.5929. But in that case, we'd expect strong resistance from 61.8% retracement of 1.7190 to 1.4565 at 1.6187 to limit upside. On the downside, below 1.5338 minor support will turn focus back to 1.5164 support instead.

EUR/USD Weekly Outlook

EUR/USD's recovery after drawing support from 55 days EMA argues that the corrective rise from 1.0461 is possibly still in progress. Initial bias is mildly on the upside this week for 1.1713 resistance.

3 Key Principles of Technical Analysis

1st Principle – Market discounts everything.

Everything including news, facts, data, emotions, and expectations. Everyone (including the fundamental analyst) ponders over each piece of information to make only one decision: to buy or to sell. This single decision affects price and volume.

USD/JPY Weekly Outlook

USD/JPY dropped sharply to 116.13 last week. The pair then drew support from 115.55/116.38 (38.2% retracement of 101.08 to 125.85 at 116.38) and rebounded. Price actions from 125.85 should develop into a corrective pattern that would extend in short to medium term. Thus we'd expect strong resistance above 61.8% retracement of 125.27 to 116.13 at 119.62 and bring another fall. Below 119.78 minor support will turn bias to the downside for 115.55/116.38 support again.

EUR/USD Weekly Outlook

EUR/USD surged to as high as 1.1713 last week but faced strong resistance below 1.1810 fibonacci level and reversed. Initial bias is mildly on the downside this week for 1.1016 support first. Break will larger 1.0807. Decisive break there will confirm completion of whole rise from 1.0461 and would likely extend the larger down trend. On the upside, above 1.1363 minor resistance will turn bias neutral.

GBP/USD Weekly Outlook

GBP/USD rose to 1.5817 last week but dropped sharply since then. The development suggests that the corrective pattern from 1.5329 has completed with three waves up to 1.5817. Initial bias remains on the downside this week for 1.5329 first. Break will resume the fall from 1.5929 and target 100% projection of 1.5929 to 1.5329 from 1.5817 at 1.5217. Break will target 161.8% projection at 1.4846. On the upside, above 1.5508 minor resistance will turn bias neutral first. But risk will now stay on the downside as long as 1.5817 resistance holds.