EUR/USD, GBP/USD and USD/JPY lose momentum ahead of BoJ and ECB rate decisions
Outlook on EUR/USD, GBP/USD and USD/JPY amid Fed blackout period ahead of BoJ and ECB rate decisions.
EUR/USD stays side-lined
EUR/USD continues to oscillate around the 55-day simple moving average (SMA) at $1.0903 and is struggling to break through its December-to-January downtrend line at $1.0904 amid the US Federal Reserve’s (Fed) blackout period in which members aren’t allowed to make any official statements.
Further sideways trading between Monday’s $1.0909 intraday high and the 200-day SMA and last week’s low at $1.0847 to $1.0845 remains at hand.
A rise and daily chart close above $1.0909 would eye the 12 and 15 January lows at $1.0933 to $1.0936, though.
GBP/USD recovery is running out of steam
GBP/USD's rally off last week’s low at $1.2597 on differing rate cut expectations between the US and the UK has taken the cross to Monday’s $1.2724 intraday high before it gave back some of its recent gains.
While Friday’s low at $1.2662 underpins, though, upside pressure should prevail. Significant support below this level sits between the late December to January lows at $1.2612 to $1.2597.
Resistance above $1.2724 is to be found at the 22 December high at $1.2744. Further up lie the 2 and 11 January highs at $1.276 to $1.2786.
USD/JPY ascent is losing upside momentum
USD/JPY last week rose to a six-week high at ¥148.80 as Japanese inflation eased to a 17-month low and as the Bank of Japan (BoJ) sticks to its ultra-loose monetary policy.
Despite the short-term loss of upside momentum the late November highs around ¥149.75 and the psychological ¥150.00 mark remain in sight. If bettered, the November peak at ¥151.91 would be eyed as well.
Minor support below Thursday’s ¥147.66 low sits between Tuesday’s high and Wednesday’s low at ¥147.31 to ¥147.10. Further down the area between the 5 and 11 January highs and the 55-day SMA at ¥146.41 to ¥145.99 provides more important support.
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