For now, according to the daily chart, the bullish movement has been showing for the last three months.
However, recently it passed the 40days moving average line, and it will continue to test down to the 60, 80, 100, and 120 days of moving average line. The chart will always not be the same. Those moving average lines will become a support or resistance line to establish a new pattern in the chart.
They are showing similar movement as EUR/ USD. In the long-term view, I believe it will recover to 0.81 based on 2017 and 2018’s highest trend line.
According to the yearly chart, 10days moving average line is the resistance line. The line is the 2017 and 2018’s highest trend line.
Low interest rate of the U.S. Fed decision has made USD weaker than before, but recently its double bottom pattern is turned into the raising market.
But this kind of bearish pattern is, I believe, only for the short term.
USD/JPY Daily Candle Chart
After the Covid- 19, V up pattern is shown up shortly. But now it affects the market downturn.
For those who followed my posting, as I repeated many times, to make a perfect bullish turn from a bearish movement, the candles must follow and break through the short term moving average lines first. Those winning candles will continue testing other long term moving average lines to turn into the strong bullish market. It is the classic way to change the market flow, and I explained it to you many times.
That is why USD/JPY could not keep the bullish market even though they made the V pattern. The candles did not hang long enough to test the moving average line.
In the long term, USD/JPY will continue to go down.
Since 2019, due to its long term 60days moving average line, and short term 5, 10, 20 days moving average lines are continuing to resist the current candle movement.
GBP/USD Daily Candle Chart
After the Covid-19, the market appeared in the V pattern. But it was not built in a short time. The V was turned into the clear N pattern with continued up trend. But now it is suddenly turned to the down trend, like we saw in the last December 13th after the market double tested 1.35143.
Yesterday, GBP stopped six days bearish movement, and tested 55days moving average line to change the market trend. But currently the 3days moving average line is the resistance line that seems not too easy to pass through.
But, in this week or next week, we might be able to see a temporarily bullish market, just for a short time.
From the monthly chart, the trend line of 2014 and 2015 is down.
Currently the market gets support from the 2017’s lowest line. But the 50days moving average line is the resistance line that the market is in the downtrend.
Even if daily charts might show shoot up, it is only because of the monthly chart candle to making a long body since July and August they are making. In the long term, GBP/ USD will test the 1.2 line. Even if we see the bullish pattern, the movement will be temporary, and I alarm you that it will possibly dangerously harm you.
