Created on December 02, 2025

• EUR/JPY pulled back early Monday but remains broadly supported, with buyers likely to step in on dips.
• The Bank of Japan’s inability to tighten keeps the yen weak, leaving the broader uptrend intact unless 175 breaks convincingly.

The Euro fell against the Japanese yen during early trading on Monday, but as you can see, we continue to see a lot of choppy behavior. And I think ultimately this is a market that will, given enough time, have to make a bigger decision. The short-term pullbacks really aren’t anything significant. I think what we’re looking at here is a situation where the market remains by on the dip. And I do think plenty of buyers are out there waiting to get involved. Keep in mind that the Japanese yen is backed by the Bank of Japan, which can do almost nothing to tighten monetary policy at the moment. And with this, I think you have a situation where, eventually, most currencies rise against the Japanese yen, even if we did fall from here, the 177.70 level is where the 50-day EMA currently resides and is rising. This should offer at least a little bit of support.

If We Break Down

Anything underneath there then opens up the possibility of a move down to the 175.50 yen level. Ultimately, this is a market that I think will eventually go to the 185 yen level, but I do believe ultimately this is a market that probably goes a lot higher than that as well. This will be especially true if we get more risk appetite out there. And especially if the Japanese finally admit that they cannot tighten things.

If we break down below the 175 yen level, then it is likely that the trend may change, but I just don’t see that happening at the moment. I believe that this is a story about the Japanese yen and not the euro, as we see most yen-related pairs moving in the same direction.

Begin trading our daily forecasts and analysis. Here is a list of Forex brokers in Japan to work with.

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.

Created on December 02, 2025

• The British pound briefly rallied before stalling near key moving averages, reflecting hesitation ahead of upcoming central-bank decisions.
• With rate-cut expectations in both the US and UK, the broader bias remains downward unless GBP/USD can break above 1.3350.

The British pound initially rallied during the trading session on Monday, but as you can see, we have turned around to show signs of hesitation. What I find interesting is that we find ourselves testing a couple of major moving averages at the moment, and we don’t seem to have the massive amount of momentum that would suggest that we are going to blow through these indicators. After all, the 50-day EMA and the 200-day EMA just below them both are important to traders, and it looks like they are in fact offering a little bit of a lid. The British pound has been falling since the middle of September, when we got the FOMC statement and press conference that got rid of the idea that the Federal Reserve is going to start cutting rates rapidly. Quite frankly, the inflation situation in the United States hasn’t been completely beaten. So, we’ll have to wait and see how long that takes to change the attitude of the FOMC.

Central-Bank Policy Crosscurrents

On the other side of the Atlantic Ocean, you have the United Kingdom, where, of course, the Bank of England almost cut rates at the last meeting but did not. And with that, the British pound did rally a bit, but the vote count was awfully close. And this does suggest that it is probably only a matter of time before we see rate cuts coming out of London. And therefore, if Washington, DC, cuts rates, and then London cuts rates, you essentially have no change. And I think that’s what you’re seeing here.

Ultimately, this is a market that I do favor the downside. But we need to see a little bit of a drop in order to start kicking up the momentum to drop to the 1.30 level in the short term. I think we’re just hanging around. And it is worth noting that we are only nine days away from the FOMC interest rate decision. So, there is going to be a lot of questions If we can break above the 1.3350 level now, I would anticipate that the pound is probably going to be very strong and go looking to the 1.38 level. Until then, I’m fairly skeptical.

Ready to trade our GBP/USD Forex analysis? Here are the best regulated trading platforms UK to choose from.

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.

Created on December 02, 2025

• US dollar/yen trading shows a sharp Monday pullback, but support near ¥155 has prompted attempts to recover.
• Despite volatility and hesitation, the long-term uptrend remains intact as the interest-rate differential continues to favor the United States.

The US dollar has fallen quite a bit against the Japanese yen during trading here on Monday, but has shown signs of trying to recover as the 155 yen level has offered a bit of support. This is a market that’s been in an uptrend for quite some time, and I don’t think that changes overall, but I do recognize that there is a certain amount of volatility and a certain amount of hesitation to own the dollar, but over the longer term, the interest rate differential will continue to favor the United States. And I just don’t see how that changes. After all, even if the Federal Reserve decides to cut rates, the reality is that the interest rate differential continues to just favor the Americans. The Bank of Japan is nowhere near being able to tighten monetary policy. And therefore, you get paid to hang on to this pair even though on a day like Monday, it’s a little tough.

I Remain Long

For the last several months, I’ve had a position favoring the US dollar in this pair, and that hasn’t changed despite the sharp pullback. And I do think that we will eventually try to get back to the 158 yen level, but we probably have some work to do to get there. The next Federal Reserve interest rate decision is in about nine days, so we’ll have to watch that.

Between now and then, there’s probably a lot of conjecture as to what happens and a lot of nonsensical handwringing and talking online that will perhaps influence a little bit of the trading, but over the longer term, this is still a trade that I do think eventually finds buyers looking to take advantage of value.

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.

Created on December 02, 2025

EUR/USD Analysis Summary Today

• Overall Trend: : Neutral.
• Support Levels for EUR/USD Today: 1.1565 – 1.1480 – 1.1400
• Resistance Levels for EUR/USD Today: : 1.1670 – 1.1740 – 1.1830

EUR/USD Trading Signals:

• Buy EUR/USD from the support level of 1.1520 with a target of 1.1700 and a stop-loss at 1.1460.
• Sell EUR/USD from the resistance level of 1.1720 with a target of 1.1500 and a stop-loss at 1.1800.

Technical Analysis of EUR/USD Today:

Based on recent trades, the EUR/USD price has seen stability within a symmetrical triangle pattern over the past few weeks, with trend lines converging by connecting higher lows and lower highs. The currency pair is currently trading around the key psychological level of 1.1600 and appears ready to test the upper boundary of the triangle, which may determine its next direction.

Technically, a break above the resistance trend line at 1.1650 would confirm an upward breakout and could trigger a rally as high as the widest part of the triangle pattern. Concequently, this would put the EUR/USD on track to test higher levels near or beyond 1.1700. However, if the resistance holds, the EUR/USD pair could retrace towards the triangle’s support at the psychological level of 1.1500, where the ascending trend line has provided support since late November. This area also coincides with the 100-period simple moving average, which has acted as dynamic support throughout the period of neutrality.

The 100-period simple moving average (SMA) is currently above the 200-period SMA, suggesting that the stronger trend has shifted to bullish or that an upward breakout is likely to gain momentum. The narrowing gap between the moving averages reflects continued neutrality, although the overall technical structure still favors buyers. Meanwhile, the Stochastic oscillator is hovering near its midpoint after pulling back from overbought territory, indicating that momentum is relatively neutral at present. The oscillator has room to move in either direction, so a break above resistance could push it back to overbought levels, while a rejection could lead to a decline.

At the same time, the Relative Strength Index (RSI) is hovering near the 50 level, indicating a balance between bulls and bears. The oscillator’s neutral stance suggests that the direction of the breakout could be decisive once the price breaks out of the triangle’s boundaries.

Trading Tips:

Please be aware that the EUR/USD exchange rate may be affected by upcoming economic data and central bank comments, particularly any shifts in expectations regarding the European Central Bank’s (ECB) policy or the US Federal Reserve’s (Fed) actions, which could impact the dollar.

Factors Affecting EUR/USD Trading Today

Amid attempts to bounce higher, and according to forex currency market trades, the EUR/USD path today, Tuesday, December 2, 2025, will be affected by anticipated remarks from US Federal Reserve Chair Jerome Powell. Economically, it will be influenced by the announcement of the Eurozone Consumer Price Index (CPI) reading, along with the announcement of the bloc’s unemployment rate, which will be released at 12:00 PM Egypt time.

On the front of global central bank policies, expectations suggest that the US Federal Reserve will cut interest rates again on December 17, and several times next year. In contrast, the European Central Bank (ECB) will keep interest rates unchanged for the foreseeable future due to increasing economic recovery and improving inflation dynamics.

Recently, the Harmonized Consumer Price Index (HICP) in Germany saw a notable acceleration in November, rising from 2.3% in October to 2.6% in November (consensus was 2.4%). Meanwhile, the ECB’s October survey showed a slight increase in one-year inflation expectations from 2.7% to 2.8%, reinforcing the view that the ECB is unlikely to cut rates in December. With the ECB having no justification to move, and the US Federal Reserve likely cutting rates in December, the divergence in interest rate policy between the EU and the US is expected to provide a continuous fundamental source for the EUR/USD price to rise.

Ready to trade our EUR/USD daily forecast? Here’s a list of some of the top forex brokers in Europe to check out.

Platinum price ended the positive attack by hitting $1725.00 level, to form extra barriers to force it to activate the attempts of gathering gains by reaching $1632.00.

Forming extra support at $1605.00 level by stochastic fluctuation near 80 level makes us expect renewing the bullish attempts, to repeat the pressure on $1695.00 level, then attempts to reach the next main target at $ 1745.00, while its decline below $1605.00 and providing negative close will increase the efficiency of the bearish corrective track, to expect reaching $1575.00 before any attempt to reach the suggested extra targets.

The expected trading range for today is between $1610.00 and $1710.00

Trend forecast: Bullish

The EURJPY pair remains affected by the negative pressure, which forces it to delay the attempts to resume the main bullish trend by its stability below 181.75 barrier, activating with stochastic negativity yesterday at 180.10 level.

We expect to renew the corrective attempts to target 179.40 support, then monitor its behavior due to the importance of this level to detect the expected trend in the upcoming trading, while breaching 181.75 level and providing positive close will ease the mission of recording new gains, to expect its rally towards 182.35 and 182.80 initially.

The expected trading range for today is between 179.40 and 181.00

Trend forecast: Bearish

The EURJPY pair remains affected by the negative pressure, which forces it to delay the attempts to resume the main bullish trend by its stability below 181.75 barrier, activating with stochastic negativity yesterday at 180.10 level.

We expect to renew the corrective attempts to target 179.40 support, then monitor its behavior due to the importance of this level to detect the expected trend in the upcoming trading, while breaching 181.75 level and providing positive close will ease the mission of recording new gains, to expect its rally towards 182.35 and 182.80 initially.

The expected trading range for today is between 179.40 and 181.00

Trend forecast: Bearish

– Written by


Frank Davies

STORY LINK GBP to USD Forecast: Pound Sterling Subdued as Budget Fallout Deepens

The Pound to US Dollar exchange rate (GBP/USD) drifted sideways on Monday, with UK political tensions and shifting expectations around US monetary policy leaving the pairing without a clear direction.

At the time of writing, GBP/USD was hovering around $1.3232, stuck in a tight band since the session began.

The Pound (GBP) traded without conviction at the start of the week, as the political and economic aftershocks of the UK’s autumn budget continued to weigh on sentiment.

Sterling was unsettled by fresh accusations that Chancellor Rachel Reeves misrepresented the true state of the public finances ahead of the budget. The Office for Budget Responsibility (OBR) had revised productivity lower, but this was offset by stronger wage growth and healthier tax revenues — leaving Reeves with a surplus rather than the anticipated funding gap. Despite this, she signalled in pre-budget comments that tax increases were unavoidable.

The controversy has emerged at a difficult moment for the government. Both Reeves and Prime Minister Keir Starmer are grappling with persistently weak polling numbers and simmering frustration within Labour ranks, fuelling concerns that political tensions could escalate.

This undercurrent of instability kept the Pound on the back foot throughout Monday’s session, with traders wary that further volatility may lie ahead.

The US Dollar (USD) found its momentum constrained at the start of the week, even as markets leaned towards a risk-off stance, amid rising expectations of an imminent Federal Reserve interest rate cut.

Confidence in a December cut has grown steadily, with markets now pricing in an 87.6% probability — up from 84.4% a week ago. Softer labour market indicators have fuelled speculation that the Fed may act sooner rather than later to ease borrowing costs.

With rate-cut expectations building, the ‘Greenback’ struggled to extend any gains, its upside capped by the growing conviction that lower interest rates may be just around the corner.

GBP/USD Forecast: UK Politics Could Keep Pressure on Pound

Looking ahead, the political and fiscal turbulence following the autumn budget is likely to remain a dominant driver for the Pound, particularly in the absence of major UK data releases.

If pressure on Reeves and Starmer continues to mount — especially if dissent within the Labour Party becomes more vocal — Sterling may find it difficult to attract sustained support. Renewed political instability remains a well-established risk factor for GBP.

For the US Dollar, broader market sentiment may determine the next move. A risk-on shift would typically limit demand for the safe-haven currency, while a turn toward risk-off trading could help the ‘Greenback’ regain ground.

Like this piece? Please share with your friends and colleagues:

International Money Transfer? Ask our resident FX expert a money transfer question or try John’s new, free, no-obligation personal service! ,where he helps every step of the way,
ensuring you get the best exchange rates on your currency requirements.

TAGS: Pound Dollar Forecasts

Created on December 01, 2025

EUR/USD Analysis Summary Today

• Overall Trend: : Neutral.
• Support Levels for EUR/USD Today: 1.1555 – 1.1470 – 1.1400
• Resistance Levels for EUR/USD Today: : 1.1640 – 1.1700 – 1.1770

EUR/USD Trading Signals:

• Buy EUR/USD from the support level of 1.1510 with a target of 1.1700 and a stop-loss at 1.1450.
• Sell EUR/USD from the resistance level of 1.1700 with a target of 1.1500 and a stop-loss at 1.1780.

Technical Analysis of EUR/USD Today:

At the end of last week’s trading, the EUR/USD stabilized following the release of the latest Eurozone Consumer Price Index (CPI) data. As announced, inflation is stable across most member states, and falling energy prices may contribute to its gradual decline. Excessive disinflation could eventually prompt the European Central Bank (ECB) to consider further cuts, which would weigh on the Euro, but there is no evidence of this yet. According to licensed currency trading platforms, the Euro/Dollar price is currently stable around the 1.1600 level in the neutral zone at the start of the trading week.

Eurozone Inflation Rate Stabilization

According to the results of the economic calendar data, consumer price pressures in the Eurozone continue to show stability. National data pointed to subdued inflation expectations for November, reinforcing the ECB’s position to keep interest rates unchanged at this month’s meeting. As announced, the annual Consumer Price Index (CPI) in France stabilized at 0.8%. Harmonized inflation in Spain fell slightly to 3.1% from 3.0%, as falling food and transport prices offset some stickier core factors. In Germany, regional data from key states like North Rhine-Westphalia and Bavaria showed little change from the previous national reading of 2.3%.

On the other hand, selling price expectations in the services and manufacturing sectors have recently risen again, and upcoming fiscal stimulus is also expected to lead to new inflationary pressures, at least in certain sectors. In this regard, economists at Standard Chartered reported that their model suggests Eurozone core inflation is aligning with 2.5% for November. Akriti Agarwal, the bank’s European economist, stated that the rising Euro and weaker Spanish data would neutralize the upward effects of producer prices in other regions.

When is the euro trading bullish?

Based on the daily chart above, the current trading range for the EUR/USD is neutral. This is confirmed by the 14-day Relative Strength Index (RSI) holding around a reading of 52, slightly above the neutral line. Simultaneously, the MACD indicator lines are preparing to turn upward pending stronger positive catalysts. A bullish turn for the Euro/Dollar requires a move toward the resistance levels of 1.1685, 1.1770, and 1.1820, respectively. Conversely, the bearish scenario for the Euro/Dollar will remain the most likely as long as it stabilizes around and below the psychological support level of 1.1500.

Today’s EUR/USD trading session will react to the release of the Manufacturing Purchasing Managers’ Index (PMI) readings for Eurozone economies. This starts with the Spanish reading at 10:15 AM Egypt time, the German reading at 10:55 AM Egypt time, and the aggregate Eurozone reading at 11:00 AM Egypt time. Following this, the US ISM Manufacturing PMI reading will be announced at 5:00 PM Egypt time.

Meanwhile, attention will now turn to the peace negotiations between Ukraine and Russia. As is known, any breakthrough could push energy prices down and potentially support the euro until the end of the year.

Trading Advice:

The EUR/USD exchange rate remains in a convoluted range. We are waiting for a strong move to determine the most suitable trading opportunities. Ultimitally, Buying below 1.1480 may be the best option.

Ready to trade our daily Forex analysis? We’ve made this forex brokers list for you to check out.