Daily analysis of major pairs for January 8, 2016

EUR/USD: This pair made a northward journey of about 200 pips – just from under the support line at 1.0750. This put the recent bearish outlook in a serious jeopardy, though the EMA 11 is still below the EMA 56, while the Williams' % Range period 20 is now in the overbought region. Today or Monday would prove whether this is a false breakout or it would be a sustained trending movement.

USD/CHF: After much futile attempt to go above the resistance level at 1.0100, the USD/CHF performed a pullback of about 170 pips. While the bullish outlook remains valid, it is being threatened. Today, price should turn north again, because another drop of 100 pips would invalidate the bullish trend.

GBP/USD: Since the middle of last month, the Cable has gone down by over 600 pips. There is a clean Bearish Confirmation Pattern in the chart, which means the price could continue its downward journey. The current rally attempt is very shallow, and it does not mean a bullish trend is here: It means an opportunity to sell at a better price.

USD/JPY: The USD/JPY has gone down by 250 pips this week, and right now, the price threatens to break down further. There is a lot of trading activity around the accumulation territory of 117.50, which might be easily broken to the downside. Further downward movement is possible in the market, and therefore, short trades ought to be sought.

EUR/JPY: This week so far, the EUR/JPY dropped by 350 pips, tested the demand zone at 127.00, and then bounced upwards. From that demand zone, the price has moved upwards seriously, now it is above the demand zone at 128.50. While the upward bounce may continue, the bias would be bearish as long as the price does not close above the supply zone at 130.00.