Forex Technical Major Pairs Analysis – January 5, 2026
Originally published by FXDailyReport.com
Author: Tomasz Wiśniewski
The forex market started the first week of trading in 2026 with significant movements across major currency pairs. Despite investor anticipation for more market clarity following the holiday period, volatility persists due to lingering uncertainty surrounding global economic trends, central bank policies, and geopolitical developments. The following is a detailed technical analysis of the major currency pairs as of January 5, 2026, examining support and resistance levels, key patterns, and potential trading strategies.
EUR/USD
The EUR/USD currency pair initiated the new year with signs of bullish momentum. After months of consolidation in late 2025, the euro has shown resilience against the U.S. dollar, supported by stronger Eurozone economic data and speculation that the European Central Bank (ECB) may adopt a less dovish stance in the coming months.
Key observations:
– The currency pair formed a higher low pattern on the daily chart, indicating bullish intent.
– A breakout above 1.1100 resistance would suggest the continuation of the upward trend.
– Immediate support is located at the 1.0950 level, which has held firm through recent pullbacks.
– If the bullish structure holds, the next upside target is near 1.1200.
Bullish outlook:
– A sustained move above 1.1100 opens the path to higher resistances at 1.1200 and 1.1300.
– Momentum indicators like the RSI and MACD are aligned with bullish continuation.
Bearish scenario:
– A drop back below 1.0950 would invalidate the bullish thesis and see the pair revisit the 1.0800 major support.
Traders may consider buying opportunities on pullbacks toward dynamic support levels if the bullish momentum continues.
GBP/USD
The British pound is exhibiting a gradual upward bias against the U.S. dollar. Positive sentiment around the UK economy and relative political stability are supporting GBP/USD positioning. However, Brexit-related uncertainties and challenges in economic recovery remain fundamental risks.
Technical insights:
– The pair is making higher highs and higher lows on the 4-hour chart.
– Resistance is seen at 1.2800, a key horizontal level that previously acted as a zone of rejection.
– Support levels are identified at 1.2600 and 1.2500.
Bullish scenario:
– A clear breakout and daily close above 1.2800 would confirm the continuation of the bullish cycle.
– The next short-term target would be set at 1.2950, followed by 1.3100.
Bearish contingency:
– Failure to maintain gains above 1.2600 may lead to a deeper correction toward the psychological level of 1.2500.
– A break below 1.2500 would indicate a trend reversal.
Momentum indicators support current upward movement, but caution is advised near resistance zones.
USD/JPY
USD/JPY has seen renewed volatility following shifts in risk appetite and ongoing speculation about monetary policy divergence between the Federal Reserve and the Bank of Japan (BoJ). The pair started the year testing critical support zones amid a softening U.S. dollar.
Current technical setup:
– The pair is trading within a descending channel on the daily chart.
– Strong support is visible near 142.00, while resistance lies at 145.00.
– The Ichimoku cloud suggests near-term bearish pressure but potential for a rebound exists.
Buyers would be looking for:
– A push above 145.00 to invalidate the bearish trend and open the way toward 147.00 and 149.00.
– A potential double-bottom formation if support at 142.00 holds.
Sellers may consider:
– Short positions below 144.00 with targets at 142.00 and potentially 140.00.
– Technical momentum indicators remain mixed, suggesting consolidation may occur before directional clarity.
USD/
Explore this further here: USD/JPY trading.