Created on January 29, 2026

• The British pound initially fell a bit during the trading session on Wednesday, only to see buyers at the same place again. This market continues to show resilience, and stability, despite the noise in the markets overall.

GBPJPY

The British pound initially fell a bit during the trading session on Wednesday but continues to see the 210 yen level as an area of support. I like this pair a lot, and I do think that it is probably only a matter of time before we start buying again.

Short-term pullbacks offer enough value that I definitely like watching for a bounce that I can take advantage of the continued longer-term uptrend. The 215-yen level is an area I would be watching as well.

Market Resilience and Technical Indicators

As a side note, the United States government has come out and explicitly denied any intervention in the Japanese yen, so we will see how that plays out. The US dollar against the Japanese yen has been hammered, but in that same time frame, we have only seen the British pound test the bottom of the recent consolidation.

I think this is a sign that this pair is going to remain rather resilient. The 50-day EMA sits just below the 210-yen level as well, so I think all of this comes together to offer value each and every time we drop.

If we can break above the 215-yen level, that really gets this pair going, but I think in the short term, this is a buy the dip, maybe sell the rip type of situation where we take advantage of a well-defined 500-point range. If we were to break down below the 50-day EMA, then we might have to reset closer to 208. This is a level that I would be very interested in as well.

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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 EURJPY pair repeated providing sideways trading since yesterday, due to the contradiction between the main indicators, to keep its stability near 183.45, taking advantage of forming extra support at 182.70 level.

In general, the stability above the main bullish channel’s support at 182.15 makes us wait for gathering bullish momentum to allow it to surpass 184.00 barrier, to confirm its readiness to record extra gains that might begin at 184.55 and 184.85.

The expected trading range for today is between 182.80 and 184.00

Trend forecast: Bullish

– Written by


Ben Hughes

STORY LINK GBP/USD Forecast: Pound Sterling Dips as Trump Comments Slow Dollar Slide

The Pound to US Dollar exchange rate (GBP/USD) edged lower during Wednesday’s European session, easing after briefly touching its strongest levels in nearly four years.

At the time of writing, GBP/USD was trading close to $1.3786, down roughly 0.4% from the start of the day’s trade.

After tumbling to fresh multi-year lows late on Tuesday, the US Dollar (USD) found some footing on Wednesday, recovering a fraction of its recent losses.

The greenback has faced sustained selling pressure over the past ten days, shedding around 3% since mid-January. Confidence in the currency has been undermined by ongoing uncertainty surrounding US trade, foreign and economic policy.

Losses deepened overnight after President Donald Trump appeared to welcome the Dollar’s decline, describing the move as ‘great’ and suggesting the currency should be allowed to ‘find its own level’.

By Wednesday morning, however, some USD investors began to reassess positions as attention shifted to the Federal Reserve’s upcoming interest rate decision.

While no change in policy is expected from the Fed at its first meeting of the year, the prospect of firmer guidance was enough to lend the Dollar some modest support.

The Pound (GBP) struggled to hold its ground against most major counterparts on Wednesday.

With no significant UK economic releases on the calendar, Sterling found itself short of fresh drivers, leaving it vulnerable to shifts in broader market sentiment.

Adding to the pressure, expectations for Bank of England (BoE) interest rates were nudged slightly lower, despite a run of stronger-than-forecast UK data releases last week.

GBP/USD Forecast: Political Deadlock to Weigh on the Dollar?

As the week progresses, the Pound to US Dollar exchange rate could regain upward momentum if political risks in Washington intensify.

Ongoing disputes between Senate Democrats and Republicans over Department of Homeland Security funding mean a partial government shutdown appears increasingly likely when current funding expires on Saturday. Such concerns are continuing to inflate the US Dollar’s risk premium.

Meanwhile, with the UK data calendar remaining thin, movements in Sterling are likely to stay closely tied to wider global market dynamics.

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TAGS: Pound Dollar Forecasts

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Created on January 28, 2026

The Euro has finally made a decision to break out. However, the one problem is that it did it the day before a FOMC press conference. Still a bullish look though.

EUR/USD

The Euro has actually done something for once. This is a pair that as an analyst it is very painful to cover at times because it has a history of doing a lot of nothing, jumping for a few weeks, and then doing more nothing. That being said, we have broken above an area on the EUR/USD currency pair that I have had circled since about September 17. This was when Jerome Powell’s press conference really rattled the market. Well, we are above there now, which is a very good sign for the Euro.

When you take the technical analysis from the consolidation area, it is 450 pips, give or take a few. That suggests that we could go to the 1.23 level. So I look at this and I realize that it is an area that has mattered more than once. This is an area that has been a significant top multiple times going back about a decade, and then you can see that there is action all the way back to 2015, and even 2012 and 2010. In other words, it is an area that the market likes.

The FOMC Factor

I think that might be where we head because technical analysis suggests that, momentum suggests that, but I don’t think we have all clear quite yet. Quite frankly, we have a press conference after the FOMC decision on Wednesday and Jerome Powell could really throw a monkey wrench into this not even meaning to. If he starts talking about sticky inflation, that has people pushing back the time frame of Federal Reserve cuts even further.

So, we will have to see how that plays out. I think a pullback towards the 1.18 level or maybe 1.1850 offers a bit of an opportunity, but you have to see the bounce first. Again, it wouldn’t surprise me for this pair to go to 1.23. We have probably seen it 10 to 12 times in my career, so it is a familiar level.

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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.