The pair’s lack of bearish momentum has led to the formation of some bullish corrective waves, with GBPJPY breaking above 209.10 yesterday, recovering some of its previous losses as it currently approaches 210.10.

We reiterate that the bearish scenario remains valid as long as 210.40 holds as the key resistance level. Holding below this barrier would give the price a new opportunity to resume negative trading, targeting 209.00 before renewing pressure on the obstacle at 208.10. However, breaking above the current resistance and holding above it would confirm a shift toward the bullish trajectory, paving the way for further gains initially toward 211.30 and 212.00.

The expected trading range for today is between 208.10 and 210.40 

Trend forecast: Bearish

Created on October 06, 2026

The euro continues to grind lower, but is sitting in the middle of a demand zone that we are well aware of. At this point, buyers are trying to get involved. That being said, this is a pair that could lag a bit.

EUR/JPY

The euro has fallen a bit during the trading session on Monday, but it has seen a little bit of a pushback. Ultimately, the interest rate differential does favor the euro, but part of that is due to concerns about French debt, and that is a major detriment to the currency. Those are not higher interest rates because the economy is hot. France is the second-largest economy in the European Union, and this will continue to be an issue for traders when it comes to being overly bullish on the euro currency in general.

Noisy zone of Confluence

Market participants continue to see a lot of noisy behavior between the 178 yen and the 175 yen levels. With that being said, market participants continue to see a lot of noisy behavior between the ¥178 and ¥175 levels. I do like the idea of shorting the yen. It may not be here, though. We’ll just have to wait and see whether or not that takes off.

If we can break above the ¥178 level, then it could open up a move to the ¥181 level. But if we were to break down below the ¥175 level, then we could see this pair fall apart. That would probably see the euro falling against everything else, as we’ve seen, and the Japanese yen strengthening. This is a situation where we are watching a lot of things at the same time.

Ultimately, this is a market that I think is trying to find a situation where we are trying to bounce. We are seeing buyers coming in to pick up value, but this may be one of the weaker pairs when taking into account the yen as the denominator.

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Christopher Lewis is a technical analyst and market commentator at DailyForex with more than two decades of trading experience in Forex and other leveraged markets. Based in Columbus, Ohio, he specializes in chart-based analysis of major currency pairs, stock indices, commodities, and energy markets, focusing on clear support and resistance levels, trend structure, and risk management. Christopher produces daily written and video analysis for traders who rely on technical setups to navigate volatile market conditions

As seen on: Pairs Of Aces Podcast,The Trader Guy, FXEmpire

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David Woodsmith

STORY LINK GBP/USD Forecast: Pound Sterling Holds above 1.32 ahead of Fed Minutes

The Pound US Dollar (GBP/USD) exchange rate moved modestly higher on Tuesday as a brighter mood across financial markets reduced demand for the safe-haven US Dollar.

At the time of writing, GBP/USD was trading at around $1.3239, having edged up slightly from Tuesday’s opening level.

Demand for the US Dollar (USD) eased on Tuesday as investors became more willing to move into riskier assets.

Wall Street’s technology-led rally helped lift broader market sentiment, while a retreat in oil prices offered further reassurance after elevated energy costs had contributed to recent concerns over inflation and global growth.

Despite Tuesday’s pullback, USD remained close to multi-month highs.

The US Dollar Index was hovering around 102.2 after gaining almost 1% during the previous week, while elevated US Treasury yields continued to provide the currency with a degree of underlying support.

Sterling (GBP) traded within a relatively narrow range on Tuesday morning as investors awaited comments from Bank of England (BoE) policymaker Catherine Mann.

Mann was one of three Monetary Policy Committee (MPC) members to vote for an immediate 25-basis-point rate increase at September’s meeting.

Her latest remarks could therefore attract considerable attention from GBP traders.

Any indication that she continues to favour higher borrowing costs could strengthen expectations for a November hike and provide another lift for Sterling.

Near-Term GBP/USD Forecast: Fed Minutes to Offer Fresh Policy Clues

Wednesday’s release of the minutes from the Federal Reserve’s September meeting is likely to provide the next significant catalyst for the Pound US Dollar (GBP/USD) exchange rate.

Investors will be looking for clues about how much support there is within the central bank for additional interest rate increases.

An especially hawkish set of minutes could revive some expectations for tighter policy, although a return to firm October hike bets appears unlikely.

Should the minutes instead reinforce the possibility of a December increase, the US Dollar could find some support.

Sterling’s gains may remain limited in the meantime, with traders likely to adopt a cautious stance ahead of Thursday’s busy schedule of BoE speakers, including Governor Andrew Bailey.

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USD/JPY remains stuck near resistance at 158.00 – 158.50 despite the pullback in Treasury yields. I’d note that USD/JPY has become less sensitive to Treasury yield dynamics in recent trading sessions.

Today, traders focused on BoJ Governor Ueda speech. Ueda said that BoJ would continue to raise the interest rate.

If USD/JPY climbs above the 158.50 level, it will move towards the next resistance level at 160.00 – 160.50. On the support side, a move below the 50 MA at 157.76 will push USD/JPY towards the 157.00 level. If USD/JPY settles below 157.00, it will head towards the support level at 155.00 – 155.50.

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The first chart I’m watching is the U.S. 2-year yield. It is dropping a little bit during the trading session. That could provide a little bit of relief for some risk appetite-based assets. We’ll just have to wait and see. But right now, it is still elevated, so I think anti-U.S. dollar sentiment is probably somewhat short-lived.