05.01.201601:08 Forex Analysis & Reviews: Daily analysis of major pairs for January 5, 2016

EUR/USD: Some form of weakness is perceived on this currency trading instrument. And since it tends to go into an opposite direction of the USD/CHF, the currency trading instrument would be weak as long as the USD/CHF is strong. More bearish movement of at least 100 pips is possible within the next few days.

USD/CHF: It is good that the USD/CHF went upwards in a predictable manner yesterday. The new "buy" signal that was seen last week has now resulted in a Bullish Confirmation Pattern in the market. By all indication, price is supposed to continue moving further north, with the possibility of it reaching the resistance level at 1.0100. The price has gone above the great support level at 1.0000 already.

GBP/USD: The Cable performed some near-term upswings and downswings on Monday, while the trend in the market remains bearish. There is a high probability that the price would still go further south. The accumulation territories at 1.4650 and 1.4600 are the potential targets for this week.

USD/JPY: This pair experienced some form of weakness on Monday, just as most JPY pairs experienced weakness on the same day. The bias on the pair is bearish, and thus, further weakness is expected in the market, which might make the price go below the demand level at 119.00, which was tried before the current upward bounce (that could be transitory).

EUR/JPY: The EUR/JPY went further south on Monday. The market is now moving in a directional manner, and since the bearish bias started last week, price has dropped by 300 pips. Price is now under the supply zone at 129.50, with the possibility of reaching the demand zone at 128.50.