Daily Forex Analysis – January 23, 2013

USDJPY Analysis.
USDJPY breaks below the upward trend line on 4-hour chart, suggesting that a cycle top has been formed at 90.24 on 4-hour chart, and consolidation of the uptrend from 82.11 is underway. Range trading between 87.79 and 90.24 would likely be seen in a couple of days. As long as 87.79 support holds, the uptrend could be expected to resume after consolidation, and a break above 90.24 could  signal resumption of the uptrend. On the downside, a breakdown below 87.79 support will suggest that the uptrend from 82.11 has completed at 90.24 already, then deeper decline to 86.00-87.00 area is possible.


USDCAD Analysis.
USDCAD may be forming a cycle top at 0.9946 on 4-hour chart. Key support is at 0.9900, a breakdown below this level will indicate that the rise from 0.9815 has completed, then further decline towards 0.9815 previous low could be seen. On the upside, a break above 0.9946 will indicate that the pair remains in short term uptrend from 0.9815, then next target would be at 1.0000 zone.


EURUSD Analysis.
EURUSD continues its sideways movement in a range between 1.3256 and 1.3403. Support is at 1.3256, as long as this level holds, the price action in the range is treated as consolidation of the uptrend, and another rise towards 1.3500 is still possible. Only break below 1.3256 will indicate that lengthier consolidation of the longer term uptrend from 1.2661 (Nov 13, 2012 low) is underway, then deeper decline to 1.3150-1.3200 area could be seen.


USDCHF Analysis.
USDCHF has formed a cycle top at 0.9388 on 4-hour chart. Further decline could be expected in a couple of days, and next target would be at 0.9200 area. Resistance is at 0.9388, only break above this level could trigger another rise to 0.9450 zone.


AUDUSD Analysis.
AUDUSD breaks above the downward trend line on 4-hour chart, suggesting that a cycle bottom has been formed at 1.0485, and the fall from 1.0597 has completed. Another rise could be expected and next target would be at 1.0600 area. Support is at 1.0485, only break below this level could trigger another fall to 1.0400 zone.


GBPUSD Analysis.
GBPUSD remains in downtrend from 1.6176. Further decline would likely be seen after a minor consolidation, and next target would be at 1.5750 area. Resistance is at 1.5895, only break above this level could signal completion of the downtrend.