EUR / JPY: The euro faces a tendency

After collapsing in the last three weeks, the euro seems to be showing signs of life, but has not yet regained enough strength. If appreciated markedly could be due to a fall in the yen or a strong rally in stocks.

After collapsing in the last three weeks, the euro seems to be showing signs of life, but has not yet regained enough strength. If appreciated markedly could be due to a fall in the yen or a strong rally in stocks. The crossing has become distinctly bearish trend with regard to older graphics.

In the daily charts are bullish signals but do not show strength on the cross, not even the breaking of a trend line in four hours has boosted the euro. In four hours we see the moving average periods of 20 to serve as a support in the 125.80 area. Just above 127.00 the pair traveled to enable new bulls, with initial focus on 128.50 (Fibonacci decline of 38.2 – rally from 134 to 124). In case you keep the following is at 129.50.

The bearish rally crossing seems to have taken a breather, but a wave of risk aversion can put in danger the support, formed by the minimum of the week at 124.70. In case of falling below might expect a downward extension of the routes likely to target 122.40. In the long run the zone between 121.50 and 122.00, should provide support and if that falls below par, would enable further decline to 119.40.

GBP / JPY: No clear direction in the long term

On older charts crossing continues to move within a range between 139.00 and 153.20, a break of the same that tells us we probably crossing the guideline in the medium term. While the pair remains within the same, the guideline will be dominant side.

The couple has built up four weeks in the fall and just now seems to be recovering. In matters of fundamentals, this is a fight where the winner is the least weak currency. The British economy is that it is costing more out of recession and Japan’s rise to many doubts about the future and has serious growth problems.

In four hours charts the pair is moving within a downward channel and as you continue to make the guideline on what future movements (short term) will be downward. Just above 146.00 the pair will no longer have this bearish bias. Should continue to drop, you can find support at the lower limit of the bearish channel; levels below 143.00 we likely to generate a new bassist with an immediate rally in 142.00. A significant close below 141.00 would enable the pair to test the support of the range mentioned above, which if broken could further weaken the pound.

EUR / GBP: Minimum in 5 months

The pair remains lateralized, but despite the recent recovery of the euro, the trend still favors the pound in mid-January has broken an important line of tenure upward thereby enabled greater casualties. We remain bearish outlook in force while the pair remains below 0.9000. Until there is possible rebound of the euro, however at 0.8785 and 0.8830 resistance that are important in the absence of any surprising news in England, should limit the upload.

The signals on the charts four hours start to favor the pound with the majority turning downward. Between 0.8730 and 0.8700, we find an area of major carriers that can slow the downward path. Once the price falls below 0.8700 could speed up bassist, is rapidly turning the pair test 0.8650 support. In case of transfer, we see that the pair may be directed to test lows of January at around 0.8600.

EUR / CHF: Still no concrete signs of the Swiss National Bank, in addition to rumors, the couple continues to operate near maximum ten-month low below 1.4750. Technically the pair is clearly a bearish trend. It is currently testing a resistance in the 1.4740 area, a daily close above it would be a strong bullish signal. However, as the pair remains below 1.5050, any upward move will be a correction in a downtrend. The couple already accumulated seven consecutive months with losses, taking into account the outcome of January.

CHF / JPY: In battles between currencies that provide shelter is clear that, at least for now, the yen goes far beyond the Swiss franc. During January the pair fell sharply but managed to stay within a side channel in the next trading since mid-June. The same has support at 84.00, and 91.50 resistance. A break of either, we see probably the beginning of a medium-term travel in the direction of the breakup.

GBP / CHF: The pair remains without a clear direction in the short to medium term. A confirmation above 1.7100 would lead the pair to become clearly upward. In the short term, a fall below 1.6720 could lead to 1.6600 and 1.6515 if follow up.

Facundo Molina is founder and director of MolFX - Management, a company fully specialized in Foreign Exchange Markets, with an important client portfolio through Capital Markets Services LLC (CMS). He has a BA Business Management at the Universidad Nacional del Sur (Argentina), where he has a doctorate degree based on the application of Fibonacci theory into financial markets. He also acts as professor of new and experiments traders.