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Both EUR/USD and USD/JPY  are experiencing interesting  patterns on their charts.

Taking a technical look at both major pairs, the team at Nomura see more potential for the US dollar.

Here is their view, courtesy of eFXnews:

The down channel in EUR/USD is still in force from 1.26 and now there is strong resistance at 1.1864, notes Nomura.

Another convincing break of 1.1754 can set the stage for a fresh drop to 1.1713/1640 which are levels from the monthly chart that represent the next support zone,” Nomura projects.

“From a wave perspective, if wave-4 is complete as labeled, then wave-5 lower is underway and can sport another impulse lower. For today initial resistance is right here at 1.1864; support is 1.1713,” Nomura adds.

EURUSD wave technical analysis January 15 2015 down channel strong resistance Nomura

In USD/JPY,  Nomura favored a flat rather than a triangle to explain this wave-4 consolidation.

“The drop below 118 promotes the alternate idea and we are now shifting to the bull triangle interpretation. The ideal target for wave-C in this coil is 116.95 but the pattern remains valid above 116.30/115.57,” Nomura argues.

“The reason we view this is a bullish consolidation is because of the choppy declines (from 121.85 and 120.85) against the trend that are the hallmark of corrections. S/t, support is 116.30/115.57,” Nomura clarifies.

Resistance is 117.74 and then 118.85; above those levels can signal a wave-D rally to 119.77,” Nomura projects.

USDJPY bull triangle dollar yen points to upside January 15 2015 technical analysis

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