The EURJPY pair touched 161.18 level followed by declining below 160.25 barrier again due to the continuous contradiction between the major indicators to force it to postpone the bullish rally for now.
The price might continue to provide mixed trades until confirming breaching the mentioned barrier to reinforce the chances of achieving new gains that might extend towards 161.65 and 162.40 levels first, while declining below 159.00 will force it to suffer big losses by crawling towards 157.90 and 157.30 levels.
The expected trading range for today is between 159.20 and 160.25
Tesla’s stock price (TSLA) rose in the intraday levels after finishing the harmonic short term formation that is the AB/CD pattern, which is a positive pattern, combined with positive signals from the RSI after reaching oversold levels, amid the dominance of the main upward trend in the medium term, while still suffering due to trading below the 50-day SMA, hindering upcoming gains.
Therefore we expect more gains for the stock, targeting the important resistance of $377.30, provided the support of $326.60 holds on.
Tesla’s stock price (TSLA) rose in the intraday levels after finishing the harmonic short term formation that is the AB/CD pattern, which is a positive pattern, combined with positive signals from the RSI after reaching oversold levels, amid the dominance of the main upward trend in the medium term, while still suffering due to trading below the 50-day SMA, hindering upcoming gains.
Therefore we expect more gains for the stock, targeting the important resistance of $377.30, provided the support of $326.60 holds on.
The Euro has rallied during the trading session on Thursday as we are now testing the crucial 50 Day EMA.
The 50-day EMA is a significant technical indicator that many traders closely monitor.
Ultimately, this is a market that I think continues to see a lot of choppiness, but I believe that the Euro will continue to be rather weak from the longer-term standpoint.
Recent Consolidation
Recently trading in this market has been between the 1.05 level at the top and the 1.02 level at the bottom. At this point, we are getting fairly close to the top, and it’s probably worth noting also that the 1.05 level has a lot of noise that extends all the way to the 1.06 level. Because of this, I think you’ve got a situation where a lot of traders are going to be struggling to break out above there, but if we did see the Euro break that level, then you have to have serious discussions as to whether or not the trend has changed.
As things stand right now, I don’t see the EUR/USD pair breaking above there, unless something drastically changes in the United States, because the European Union is starting to see signs of life in Germany and France, but they still have a long way to go as far as monetary policy is concerned. In fact, this is part of the problem with the European Union, you have countries like Spain which will be completely different than countries like Greece or Finland. I would not want the job of setting monetary policy in this scenario.
As things stand right now, I’m more than willing to start fading signs of exhaustion after short-term rallies, and I think ultimately this is a market that will continue to look for a long wick’s to the upside to start shorting again. This is what I’ve been doing for a couple of months, and until something fundamentally changes, or we break above the 1.06 level, there’s no reason to get long of the Euro.
During the trading session on Thursday, we have seen the British pound rallied quite significantly, but at this point in time it also looks like we are struggling with the same resistance barrier that we have been dealing with for some time.
I think at this point in time, the market will face a lot of noise between the 1.25 level in the 1.26 level above.
At this point, I think you have a situation where traders will continue to pay close attention to the bond market. It looks like interest rates are pulling back a little bit in the United States to weaken the US dollar for the short term, but over the longer term, it’s very likely that we will see the British pound soften a bit. We could see some exhaustion coming back into the market rather soon. However, it’s also worth noting that we are through most of the fundamental announcements for the week, so I think we’ve got a situation where the next day or 2 could tell us a lot. After all, if there is no fundamental reason for the British pound to suddenly weaken or give up some strength, it tells you how weak that Sterling really is.
On the Other Hand
On the other hand, if we were to continue to go higher and break above the 1.26 level, then we are going to be fighting the 200 Day EMA. The 200 Day EMA is a large technical indicator that a lot of people pay close attention to, and some people even base the entire trend on this indicator. If we were to break above there, then it’s likely that the market could go looking to the 1.2750 level after that.
That being said, I don’t necessarily think we are going to break above there but if we did, that would obviously be a very bullish sign. At that point, I would anticipate that the US dollar is in serious trouble against most currencies, not just the British pound. However, when you look at the chart you can see easily that the market is still for the most part in a consolidation zone, so I think it makes a lot of sense that we fade this rally given enough time.
The USD/JPY forecast suggests a brief pause after a rally in the previous session.
The US reported that inflation increased by 0.5% in January.
Market participants are keeping an eye on Trump’s tariff developments.
The USD/JPY forecast suggests a brief retreat as traders take profits after an upbeat US inflation report. However, the bullish bias remains intact as market participants price a hawkish Fed and only one rate cut this year. High borrowing costs will keep a wide gap in rates between the US and Japan, hurting the yen.
–Are you interested in learning more about STP brokers? Check our detailed guide-
The dollar rallied to new peaks against the yen after an upbeat consumer inflation report, reversing the previous downtrend. The US reported that inflation increased by 0.5% in January, well above estimates of a 0.3% increase. At the same time, the annual figure jumped by 3.0%, beating forecasts of 2.9%. The unexpectedly hot numbers pushed market participants to slash bets for Fed rate cuts. After the report, traders were only pricing 28-bps of rate cuts this year, down from 37-bps.
Meanwhile, market participants are keeping an eye on Trump’s tariff developments. The US President has promised to impose duties on all countries that have tariffs on US goods. Such an outcome would rekindle fears of a global trade war and economic uncertainty. Moreover, tariffs will likely keep US inflation high, forcing the Fed to keep rates at elevated levels.
USD/JPY key events today
US core PPI m/m
US PPI m/m
US unemployment claims
USD/JPY technical forecast: Bulls pause to retest 154.01 as support
USD/JPY 4-hour chart
On the technical side, the USD/JPY price has broken above the 30-SMA and soared past the 154.01 resistance level. At the same time, the RI has jumped and now trades near the overbought region. This shows a strong shift in sentiment from bearish to bullish.
–Are you interested in learning more about making money with forex? Check our detailed guide-
Previously, the price had shown massive bearish momentum when it collapsed through the 154.01 support and reached the 151.02 level. However, bears could not continue beyond this level. As a result, bulls emerged and made an engulfing candle that signaled a looming reversal. Soon after, the price broke above the SMA, rising to new highs.
At the moment, the price is retesting the 154.01 level as support. If it holds firm, the price will likely climb to the 156.00 resistance level. However, it might drop further to the 30-SMA before making new highs.
Looking to trade forex now? Invest at eToro!
68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Important DisclaimersThe content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party’s services, and does not assume responsibility for your use of any such third party’s website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.Risk DisclaimersThis website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
The GBPJPY pair continued to form strong bullish trades, taking advantage of the frequent stability above 189.70 level that formed key support against the bullish attempts, to notice surpassing the first additional target at 192.30 and approach 50% Fibonacci correction level at 193.30 as a next station for the current trades.
Also, stochastic reach to 80 level confirms providing the additional positive momentum to increase the chances of surpassing 193.30 level soon to manage to record additional gains that might start at 193.60 and 194.20 levels.
The expected trading range for today is between 191.80 and 193.60
The GBPJPY pair continued to form strong bullish trades, taking advantage of the frequent stability above 189.70 level that formed key support against the bullish attempts, to notice surpassing the first additional target at 192.30 and approach 50% Fibonacci correction level at 193.30 as a next station for the current trades.
Also, stochastic reach to 80 level confirms providing the additional positive momentum to increase the chances of surpassing 193.30 level soon to manage to record additional gains that might start at 193.60 and 194.20 levels.
The expected trading range for today is between 191.80 and 193.60
The GBPJPY pair continued to form strong bullish trades, taking advantage of the frequent stability above 189.70 level that formed key support against the bullish attempts, to notice surpassing the first additional target at 192.30 and approach 50% Fibonacci correction level at 193.30 as a next station for the current trades.
Also, stochastic reach to 80 level confirms providing the additional positive momentum to increase the chances of surpassing 193.30 level soon to manage to record additional gains that might start at 193.60 and 194.20 levels.
The expected trading range for today is between 191.80 and 193.60
