The GBPJPY pair didn’t move anything by forming sideways trading due to its stability continuously below the resistance at 208.80, forming an obstacle for resuming the bullish trend.

The price might form temporary corrective trading, but the stability within the bullish channel levels and the continuation of forming extra support at 206.90 level, these factors support the chances of renewing the bullish attack, to expect surpassing the current resistance by recording new gains that might extend 209.30 and 209.75.

The expected trading range for today is between 207.40 and 208.90

Trend forecast: Fluctuated within the bullish trend

– Written by


Tim Boyer

STORY LINK British Pound to Dollar Forecast: GBP/USD Holds 1.34 Despite UK Recession Fears

The British Pound to Dollar exchange rate (GBP/USD) eased to around 1.338 as markets digested a shock 0.1% contraction in UK GDP for October, marking a second straight monthly decline.

The data undercut recent Pound Sterling optimism and reinforced expectations of a BoE rate cut next week.

Sterling’s ability to stabilise now hinges on whether continued US Dollar weakness can offset deepening UK growth concerns.

GBP/USD Forecasts: 7-Week Best

The dollar lost ground following Wednesday’s Federal Reserve policy rate cut with the Pound to Dollar (GBP/USD) exchange rate jumping to 7-week highs just below 1.3400 before settling around 1.3360.

A sustained move above 1.3400 would boost market confidence in the Pound.

The Pound is likely to remain dependent on dollar weakness to make gains.

From a medium-term view, SocGen forecasts a GBP/USD retreat to 1.27 at the end of 2026 as the dollar rebounds.

The next domestic hurdle for the Pound will be Friday’s GDP data with consensus forecasts of 0.1% growth for October after a 0.1% decline the previous month. Stronger than expected data would help support the Pound.

The Fed met strong market expectations with a further 25 basis-point cut to 3.75%.

There was further evidence of a divided Fed with two members voting against the latest cut while Miran voted for a larger 50 basis-point cut.

As far as 2026 is concerned, the median projection is for one cut, but there were wide divisions with seven members backing no cut.

MUFG commented; “The soft dissents reinforce our view that it will become even harder to cut rates further at the start of next year.

Chair Powell noted that the bank would be data dependent and did not rule out a further move early in 2026.

Danske Bank commented; “Powell made it clear that the Fed is in no hurry to ease its policy further. At the same time, he also refrained from clearly pushing back against the market pricing, which currently sees slightly more than 50bp of additional cuts for the coming year.”

There will be a greater focus on the Bank of England ahead of next week’s policy decision.

There are strong expectations that there will be a 25 basis-point cut to 3.75% and, following the latest Federal Reserve cut, markets are pricing in a slightly more aggressive BoE stance next year.

According to ANZ; “As the inflation rate moderates, the policy rate needs to be cut to prevent the real rate from rising. The dynamics of a sluggish labour market and a disinflationary budget indicate that price pressures will cool over the coming months.”

It added; “However, both household and business inflation expectations remain elevated. It is, therefore, likely that the MPC eases the policy rate gradually to anchor inflation expectations at lower levels. Following the expected 25bp rate at next week’s meeting, we forecast three additional 25bp cuts in 2026.”

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TAGS: Pound Dollar Forecasts

Created on December 12, 2025

• USD/JPY fell sharply on Thursday before rebounding from the 155 level, which continues to act as a strong floor.
• With the Bank of Japan avoiding tightening and the Fed signaling uncertainty, the pair remains a buy-on-dips market amid choppy consolidation.

The US dollar has fallen pretty significantly against the Japanese yen during trading here on Thursday, but the 155 yen level has been like a floor, and we’ve bounced quite nicely. So to me, it looks like we’re at least trying to consolidate after all. There are a lot of questions out there about what’s going to happen next with the Federal Reserve, because we had suggested previously that there were going to be multiple interest rate cuts, but now the data-dependent phrase keeps getting kicked around.

Key Floors and Pullback Strategy

With that being said, and the fact that the Bank of Japan has no real intention of tightening up monetary policy if they can avoid it, that makes sense that we will eventually go higher. And even if we do break down from here, I see the 50-day EMA at the 153.88 level offer in support, followed by the 153 yen level.

All things being equal, you know, I’ve been pretty obvious about it that I’m a buyer here of this pair, and I like these pullbacks for a little bit of value. I look for short-term pullbacks that show signs of bounces like we have had on Thursday as a potential entry. I build on a position, I collect swaps at the end of the day, and my account grows as a result. If we were to break down below the 152.80 yen level, then it’s possible that the market could drop to the 200-day EMA.

That being said, I think we’re going to see a lot of choppy and volatile trading as we more likely than not probably try to stabilize. The question is, what’s the floor? Is it 155 yen or is it 153? We’ll know in a few days.

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 EUR/USD forecast remains bullish, with a recent pullback triggered due to profit-taking.
• The Fed’s dovish path limits the euro’s losses, supporting a dip-buying trend in the EUR/USD.
• FedSpeak and next week’s US NFP could provide more clarity to the markets.

The EUR/USD marked a 10-week high near 1.1750 on Thursday before retreating mildly in today’s Asian session as the US dollar staged a rebound. The pullback came after two solid sessions for the pair, which followed the Fed rate cut and dismal US jobless claims data, reinforcing dollar weakness.

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The immediate correction suggests profit-taking and stabilization of the greenback, but the broader perspective remains euro-supportive, as the Fed is expected to continue easing next year.

The Federal Reserve delivered its third 25 bps rate cut of 2025 on Wednesday, lowering the benchmark range to 3.50% – 3.75%. Although the committee remained split, the statement tempered expectations of further easing. However, the market participants viewed Powell’s tone as less hawkish, acknowledging the downside risks in the labor market. This, combined with Thursday’s downbeat US jobless claims data with a rise of 44,000, reinforced the view that labor markets are cooling. The Fed’s dovish tilt seems justified, pushing the Dollar Index (DXY) towards a 7-week low near the 98.00 area.

Political noise is also keeping the dollar on the back foot, as renewed speculation about Fed independence has unsettled investors. The White House officials’ insistence on further rate cuts continues to weigh on the greenback. This has drawn the market’s attention to Kevin Hassett, widely seen as a potential new Fed Chair, who is considered rate-friendly. According to the CME FedWatch Tool, the markets are pricing in a 58% probability of two rate cuts by October 2026, well above the Fed’s dot plot.

From the Eurozone, the ECB is expected to hold in the December meeting, pointing to the potential end of the easing cycle. ECB President Lagarde and other policymakers have reiterated that the current situation seems reasonable and requires no further cuts in the near term. This ECB-Fed divergence continued to favor dip buying in EUR/USD.

EUR/USD Key Events Ahead

The near-term direction of the pair will depend on US data. Traders will keep an eye on comments from Fed Cleveland’s President Beth Hammack and Chicago’s President Goolsbee later today. However, the key catalyst will be the NFP data due next week.

EUR/USD Technical Forecast: Bulls in the Overbought Zone

The EUR/USD 4-hour chart displays two significant spikes, indicating intense buying pressure. Though the RSI is now in the overbought zone, the bias remains tilted to the upside. The key moving averages, stacking one above the other, also support the upside.

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The key resistance for the pair emerges at 1.1800, while the immediate support lies at 1.1700, ahead of 1.1650 and 1.1600. The prices could consolidate here and might correct lower to attract more buying.

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