We have outlooked several promising Forex pairs and the result can surprise you!
GBP/JPY is choosing the way
Information is not investment advice
GBP/JPY has been moving up since the start of January. The pair broke out of a bullish flag and reached new highs in the 145.00 area. The natural target on the upside would be to test the 2018 downtrend resistance line in the 147.00 area.
However, so far GBP/JPY has been capped by the declining 200-day MA at 144.60. The Awesome Oscillator didn’t confirm the recent high. As a result, a pullback down to 100-day MA may bring the pair to 143.60 or to the next support at 143.00.
On H4, we can see that the most recent consolidation took place between 145.00 and 144.05. The direction of the breakout will decide the near-term fate of the pound.
This week, there are a few high-probability trade ideas I'd like to recommend to you. Trading these setups, be sure to implement a proper risk management approach.
On Thursday, the 2nd of February, the Bank of England will publish its report concerning interest rates and inflation data for the Eurozone. Professionals and investors anticipate that Andrew Bailey’s lead team of policy makers will likely raise interest rates to 4%; the highest in over a decade, for the tenth time in a row.
The first FOMC meeting comes after a buildup of anticipation from traders and investors alike, as the markets await what posture the Fed will take regarding the interest rates; would there be a hike or a cut in interest rates? Recall that the Federal Open Market Committee had previously ended the year 2022 with a 50bps hike, and an indication from Powell, the committee chairman, that the Fed could consider raising interest rates by 75bps in the course of the year 2023.