Forex Forecast – USD/JPY
Throughout the previous week, the Japanese Yen continued its series of losses in relation to the US Dollar. In a more general sense, the currency has been experiencing a decline due to the upward movement in Treasury yields. When compared to other major currencies, the Bank of Japan is expected to maintain a more accommodative monetary policy, which could make the Japanese Yen responsive to external events.
On the short term daily candle, USDJPY is likely to complete a triple cycle inside the bullish channel towards the 148.717 resistance area, which is also confirmed by the Fibonacci extension
Subsequent to this, there was a rebound from the ascending trendline originating in March, reaffirming the overarching upward perspective. Concurrently, the area of significance at 141.95 was fortified during the preceding week subsequent to an unsuccessful attempt to breach below it. As a result, the currency pair confronts the level of 145.07 as the upcoming week approaches. Should a buying pressure occur, it would reveal the 61.8% extension point of the Fibonacci sequence at 148.27 towards the highest price reached in October at 151.94.
Forex Forecast EUR/USD
The euro encountered a challenging week, ultimately heading towards a decline by the week’s conclusion. A sudden unexpected tax, intended to be imposed on Italian banks, was revealed on Tuesday, leading to a significant drop in the currency pair’s value. However, prices rebounded the subsequent day as the Italian president provided assurance that the tax would only constitute a maximum of 0.1% of the overall bank assets. Subsequently, there was a slight uptick in US inflation, a development that seemed to satisfy the market. Nevertheless, due to a day of noteworthy volatility, the currency pair ended the day nearly unchanged.
Several critical zones to pay careful attention to. These areas are the 1.09314 zone and the support level at 1.08522. Should these pivotal regions be respected, there is potential for EURUSD to experience an upward trend, progressing towards the resistance level of 1.11500.
Of particular significance is the resistance range of 1.08522 and 1.09343. This zone holds paramount importance for prospective buyers. Whenever sellers attempt to drive the price downward, buyers consistently rebuff these efforts, indicating a recurring pattern. This is likely to persist in the event that EUR/USD descends to this specific area.
Forex Forecast EUR/CHF
EURCHF has demonstrated a prolonged period of bearish momentum, as evidenced by the provided chart. Nonetheless, there is a compelling signal indicating a potential short-term reversal situated around the resistance zone spanning from 0.94779 to 0.94116. This particular area serves as a focal point for potential buyers, as a distinct and decisive rebuff within this zone would indicate their active participation in the market.
Moreover, it’s worth noting that EURCHF has been confined within a descending channel. The forthcoming area of rejection coincides with the aforementioned resistance zone, spanning from 0.94779 to 0.94116. An additional noteworthy validation of this potential reversal comes from observing the Relative Strength Index (RSI), which is anticipated to exhibit a bullish divergence.
It’s important to consider these factors collectively when assessing the potential for a reversal in EURCHF’s recent bearish trend.
Forex Forecast GBP/AUD
The GBPJPY currency pair is drawing closer to a significant resistance level situated at the 1.99303 mark. This specific area has consistently experienced substantial resistance from sellers, with buyers repeatedly attempting to propel the market upwards, only to be met with strong rejection from the seller side.
In the event that this resistance zone undergoes rejection once again, it is plausible that the price of GBPJPY might retreat towards the support price range positioned between 1.78518 and 1.77008.
It’s worth emphasizing that prior to considering the initiation of a selling position, a crucial factor to monitor is the bullish trend line depicted in the chart below. The confirmation of sellers gaining control within the market necessitates the breaking and subsequent rejection of this bullish trend line.
Careful consideration of these elements collectively is essential in evaluating the potential dynamics of GBPJPY’s movement in the upcoming period.
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