The EURJPY pair succeeded in surpassing the barrier at 184.00, to settle above it to ease the mission of resuming the bullish trend, to settle near the initial bullish target at 184.85 level.

The main stability within the bullish channel’s levels beside providing bullish momentum by the main indicators will increase the chances of recording extra gains, to wait for reaching 185.45 and surpassing it might push it to press on 186.20 barrier, to form the next main target in the current trading.

The expected trading range for today is between 184.30 and 185.45

Trend forecast: Bullish

– Written by


Ben Hughes

STORY LINK GBP/USD Forecast: Pound Sterling Loses Momentum as Dollar Firms on US Data

The Pound to US Dollar exchange rate (GBP/USD) drifted lower on Wednesday, easing back as investors digested a fresh batch of US economic data that lent modest support to the Dollar.

At the time of writing, GBP/USD was trading close to $1.3663, down around 0.2% from the start of the European session.

The US Dollar found some footing after the latest ISM services PMI signalled continued resilience in the US economy. January’s index held steady at 53.8, outperforming expectations for a slight dip to 53.5 and reinforcing the view that the services sector remains a source of strength.

Although the data lacked the punch of recent manufacturing releases, it was sufficient to underpin the Dollar and offset weaker labour market signals from the ADP employment report.

With the official non-farm payrolls release postponed due to the partial government shutdown, markets paid closer attention to the ADP figures, which showed job creation slowed sharply last month. Employment growth eased from 37,000 to just 22,000, highlighting a cooling trend in hiring.

The Pound, meanwhile, struggled to gain traction following the release of the UK’s final services PMI for January.

The index was revised down to 54 from an initial estimate of 54.3. While still marking the fastest pace of expansion since August 2025, the downgrade disappointed hopes of a fresh multi-month high and limited Sterling demand.

The survey also flagged ongoing weakness in employment, with service-sector firms continuing to scale back hiring. An increasing focus on automation and efficiency is weighing on job creation, tempering the otherwise upbeat headline reading.

GBP/USD Forecast: Bank of England Signals in Focus

Looking ahead, near-term direction in the Pound to US Dollar exchange rate is likely to hinge on the Bank of England’s first policy decision of 2026.

While no change in interest rates is expected, traders will scrutinise the BoE’s guidance for clues on how policymakers assess the outlook for inflation and growth. Any shift towards a firmer or more cautious tone could help Sterling stabilise as markets reassess expectations for future rate cuts.

For the US Dollar, attention will turn to the University of Michigan’s latest consumer sentiment survey. A further dip in confidence could erode some of the Dollar’s recent support if household morale continues to weaken.

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Created on February 04, 2026

I look at this market as one that could offer opportunities on dips, but it will also be very noisy and rocky to say the least.

USD/JPY

The US dollar has gone back and forth against the Japanese yen during trading here on Tuesday and it does suggest that perhaps we do not really know what to do next as we are hanging around the 50-day EMA which in and of itself will cause a certain amount of chaos.

But I think you also have to realize that this pair is struggling due to the fact that the US dollar itself is a little soft during the trading session. However, I look at this as a buy on the dip opportunity and you do get paid to hang on to the US dollar against the Japanese yen.

Furthermore, this is a great measuring stick as to how the Japanese yen may or may not behave. And I think at this point it is obvious that the Japanese yen is in significant trouble and with that being the case I do prefer to hold the dollar as it pays you at the end of every day.

Monetary Policy and Technical Support

But we are also a little stretched from a longer-term perspective. Maybe a little bit of choppiness here is on tap. I suspect you probably have an easier time with something like the British pound against the Japanese yen but I also recognize that they all tend to move in the same direction over the longer term.

The Bank of Japan finds itself in a situation where it has a lot of problems tightening monetary policy despite the fact that yet again people fell for that line. Now we have a situation where I think the 200-day EMA becomes increasingly important.

As long as we can stay above there, I am looking to buy dips, maybe collect profit on the way up and then buy the next dip. I do think the US dollar does eventually reach the 158-yen level again.

Want to trade our USD/JPY forex analysis and predictions? Here’s a list of forex brokers in Japan to check out.

Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.

The GBPJPY pair benefited from providing bullish momentum by the main indicators, especially with stochastic reach towards 80 level, forming a strong bullish rally to surpass the barrier at 213.00, to settle above the bullish channel’s support at 213.55 level, to target some extra gains by reaching 214.30.

The stability above the bullish channel’s support will provide strong chance of recording extra gains; to expect to form initial target at 214.90 level and surpassing it might extend the trading in the near period towards 215.55 and 216.35.

The expected trading range for today is between 213.80 and 214.90

Trend forecast: Bullish