Daily analysis of major pairs for April 17, 2017

The EUR/JPY dropped 270 pips last week – having dropped roughly 730 pips since March 13, 2017. Our targets for last week were exceeded, as price closed below the supply zone at 115.50, aiming at the demand zone at 115.00. The targets for the next several trading days are located at the demand zones at 115.00, 114.50 and 114.00, which might even be exceeded. However, transitory bullish effort cannot be ruled out.

EUR/USD: The EUR/USD consolidated for most of last week, save the faint and transient rally that was seen on Wednesday (in the context of a downtrend). A breakout to the downside is anticipated this week, which would most probably be in favor of bears. However, this does not rule out possibilities of bullish effort this week.

USD/CHF: This market consolidated last week – in the context of an uptrend. Price has been able to stay above the support level at 1.0000, and it could go further upwards from here, reaching the resistance levels at 1.0100 and 1.0150 this week. As long as the support level at 1.0000 is not breached to the downside, the bullish bias on the market cannot be overruled. The movement on the USD/CHF would be largely determined by the movement on the EUR/USD.

GBP/USD: The GBP/USD went upwards last week, testing the distribution territory at 1.2550. There was a faint bearish retracement on Friday, though the market is expected to move further upwards in the next several trading days, reaching the distribution territories at 1.2550, 1.2600 and 1.2650. The outlook on GBP remains bullish for this week (and the bullishness may be detected on other GBP pairs).

USD/JPY: As it was predicted, this currency trading instrument went south last week, dropping about 280 pips. There is a Bearish Confirmation Pattern in the 4-hour chart – a clean one. And since the outlook on the trading instrument (as well as other JPY pairs), is bearish, further bearish targets would possibly be met around the demand levels at 108.50, 108.00 and 107.50.

EUR/JPY: The EUR/JPY dropped 270 pips last week – having dropped roughly 730 pips since March 13, 2017. Our targets for last week were exceeded, as price closed below the supply zone at 115.50, aiming at the demand zone at 115.00. The targets for the next several trading days are located at the demand zones at 115.00, 114.50 and 114.00, which might even be exceeded. However, transitory bullish effort cannot be ruled out.

Performed by Azeez Mustapha,
Analytical expert
www.instaforex.com
InstaForex Companies Group