 Two weeks ago, the Greenback was the top performer, followed by the Japanese yen. Then, the Japanese yen we the highlight of last week. This week, the rotation comes to the commodity currencies such as the Loonie, Aussie, and Kiwi. Let’s take a look… |
 The USD/JPY has broken lower through the support of the symmetrical triangle pattern on the daily chart. As prices have pierced the uptrend line support at 89.80, the shift from neutral or non-trending to a bearish downtrend has been completed for the near term. |
 While the Greenback was the strong performer of last week, the Japanese yen took that title for this week. Although we did see a general gain in the USD, it was no match for the JPY which was boosted from this week’s risk aversion. |
 The AUD/USD continues to be strong within the context of a consolidation range seen in the Daily.The 4H time-frame shows the detail of the current upswing, and a possible Elliott wave count that is finishing c wave of Wave IV correction. |
 (1) is a relatively long channel down pattern in the EUR/CAD 60 minute time frame containing 179 candles. It began two Fridays ago at 1.4616 support (W) and has since progressed in the direction of the 1.4316 resistance level (V) as can be seen to the right of the pattern. |
 Greece’s debt concerns continue to hurt the Euro. General risk aversion was amplified by further policy’s by China in its recent attempt to ease its economic boom and stem inflation. The risk aversion boosted the USD, and JPY, but hurt commodity currencies such as CAD and AUD. |
 Risk aversion took over and the USD and JPY benefited. This week’s action is significant as it reflects breakouts and adjustments to previous outlooks. Let’s take a step back an take a look a the big picture for the currency markets… |
 The USD continued to strengthen this week, especially against the EUR, which has been declining broadly as well. There was still an air of risk aversion so the JPY started the week strong but did not have a significant push. The GBP/JPY for example showed ranging action, and the USD/JPY is already showing a possible reversal rally although there may be some short-term resistance. Let’s take a look at the week’s action, and outlook for the weeks ahead. |
 Looking at these three GBP/USD chart patterns we see a general upwards movement across the various time frames. But will the trend hold? |
 The USD and the JPY were the strong performers this week. The Greenback is breaking out of its recent consolidation mode. Risk aversion kept the Japanese Yen strong as the preferred safe haven currency. Commodity currencies are subdued, coming off December strength as gold made record highs. The risk aversion also pressured pairs such as the Loonie(CAD) and Aussie(AUD). |