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USD/JPY is pressured by resistance
Information is not investment advice
USD/JPY has declined from 111.70 and went into consolidation around 107.50. On the D1, we can see that yesterday’s attempt of bulls to bring the price higher failed: the candlestick has a long upper wick and closed below all the key daily moving averages.
The United States will release ISM Manufacturing PMI at 17:00 MT time on Wednesday, April 1. The release will likely bring the USD in motion. The decline below this week’s low at 107.10 will open the way down to 106.50 (50% Fibo retracement of the March advance). The next level to watch on the downside is at 106.50. Resistance lies at 108.80 and 108.30.
Trade idea for USD/JPY
SELL 107.05; TP 106.50; SL 107.20
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.