WLD currency price (WLDUSD) fell in the intraday levels, amid the dominance of the main downward trend in the medium term, while trading alongside the secondary short-term trend line, with negative pressure due to trading below the 50-day SMA, as the price readies to pierce the pivotal support of$1.28587183 with negative signals from the RSI despite reaching oversold levels. 

Therefore we expect more losses for the price, provided the aforementioned support of $1.28587183 was reliably breached, thus targeting the support of $0.49942978. 

Trend forecast for today: Bearish 

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• USD/JPY is testing a crucial support level.
• BOJ rate hike expectations are growing on the back of strong data.
• Key support levels are at 151.53 and 150.00, while resistance levels are at 153.91, 155.00, and 156.27.

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USD/JPY has found some support following a 150 pip drop during the Asian and early European sessions. The pair has found some support at a key confluence level where both the 100 and 200-day MA rests. 

Will we get a break or bounce off this key level?

Japanese PMIs and Fundamental Backdrop

After Tokyo’s core CPI hit 2.5%, the BOJ raised interest rates by 25bps and hinted at more hikes to curb Yen weakness against the Dollar. Since then the Yen has made a steady move higher with another positive coming from the services PMI data which kept growing in January, hitting its highest point since September 2024 and staying in the growth zone for three months in a row. Employment and prices charged also went up, showing strong job conditions and steady inflation ahead.

The Yens renewed strength today however came courtesy of strong wage growth data which further supports Bank of Japan rate hikes moving forward. 

Workers’ cash earnings went up more than expected in December, and November’s numbers were revised higher. If Shunto wage talks match last year’s strong results, there is a growing belief that the Bank of Japan might raise interest rates by 25 basis points as early as May. 

Economic Data Ahead

The major data release left for this week will come on Friday with the US NFP jobs report and average earnings data. 

There is a possibility that the US jobs market may start to tighten if companies see uncertainties from potential trade wars continue to grow. For now though I do not expect any significant surprise from the NFP data on Friday.

For all market-moving economic releases and events, see the MarketPulse Economic Calendar.

Technical Analysis USD/JPY

From a technical standpoint, USD/JPY is currently trading at a key confluence level where both the 100 and 200-day MAs rest. 

A daily candle close below this level could be a precursor for further downside which is further enforced by the growing belief in further rate hikes from the BoJ. 

USD/JPY Daily Chart, February 5, 2025

Source: TradingView (click to enlarge)

Dropping down to the four-hour chart (H4) and there is further support which rests at 151.53 before the psychological 150.00 handle comes into focus.

There are some concerns here for bears with the RSI 14-day on the H4 chart in oversold territory. 

Also from a price action perspective, the selloff was quick and does leave the pair with a possibility of a short term pullback toward immediate resistance at 153.911 before the 155.00 handle comes back into view. 

USD/JPY Four-Hour (H4) Chart, February 5, 2025

Source: TradingView (click to enlarge)

Support

• 151.53
• 150.00 (psychological level)
• 148.64

Resistance

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Created on February 05, 2025

• The Euro has shown itself to be a little resilient here over the last couple of days as traders have bought into it, or perhaps I should say covered their short positions with this market being so overextended.
• That being said, everybody’s excited about the idea of trade tariffs not coming, but Trump did mention the European Union and he has had no conversations with them whatsoever.
• Tariffs are probably on the table for the European Union still, and therefore I wouldn’t get overly excited if I were you.

Furthermore, there is also the very real possibility that this is just a dead cat bounce. This is a market that’s been falling apart for some time. Now, inevitably you would have short sellers collecting profit. Somewhere between here and 1.05, I’m looking for signs of exhaustion that I can start selling again. There are some events that could get this going.

So Many Potential Issues

The first of which comes to mind is the jobs number on Friday, but there’s also services PMI and a couple of other things going on in America that could cause this to happen, or Donald Trump could just send out a message that he’s thinking about slapping the Europeans with a 25% tariff. We’ve already seen how quickly that can happen.

At this point in time, the man is on a mission and part of that will be to open up the European markets just as he’s trying to open up the Canadian and Mexican markets as well as close the borders, ironically, at the same time. But Europe is definitely not a place that he’s afraid to threaten. He’s had issues with the Europeans more than once in his past administration, but this time around, he seems much quicker to pull the trigger. So, with that being said, I’m looking for an opportunity to short this market. I don’t see it yet, but the closer we get to the 1.05 level, the more likely I will.

Ready to trade our EUR/USD analysis and predictions? Here are the best European brokers to choose from.

Ethereum price (ETHUSD) finds difficulty to hold above 2764.75$, to move below it now, noticing that stochastic gathers the positive momentum to support the chances to rise in the upcoming sessions and surpass the mentioned level again.

Therefore, we expect to witness positive trades today, and the price needs to breach 2764.75$ resistance to confirm heading towards 3017.30$ that represents our next main target, taking into consideration that failing to breach the mentioned resistance will put the price under additional negative pressure that its targets begin by testing 2480.00$ areas.

The expected trading range for today is between 2580.00$ support and 2890.00$ resistance.

Trend forecast: Bullish

The GBPJPY pair failed to surpass 193.30 barrier yesterday, to push it to form new negative rebound and notice its consolidation near 191.25 now, hinting its surrender to the negative track again.

We notice that the consolidation of the MA55 above the mentioned barrier to confirm confining trading within the negative track for now, to expect suffering additional losses by attacking 190.55 level soon, followed by repeating the pressure on 189.60 support line.

The expected trading range for today is between 190.55 and 192.60

Trend forecast: Bearish

The EURGBP price faced new negative pressures to force it to break 0.8355 support line and suffer additional losses by reaching 0.8290, to face solid support base and settle above it as appears on the chart.

The frequent stability above the current support and stochastic positive momentum signals allow us to suggest the bullish scenario, to start targeting many positive stations by rallying towards 0.8340 soon, followed by attempting to press on the MA55 at 0.8365.

The expected trading range for today is between 0.8300 and 0.8365

Trend forecast: Bullish

The EURUSD price keeps rising to hit the broken neckline of the head and shoulders’ pattern that its signs appear on the chart, which turns into key resistance at 1.0385$, as the price needs to breach this level to confirm the continuation of the bullish wave that targets testing 1.0455$ as a next main station.

Until now, the bullish trend still suggested for the upcoming period conditioned by the price stability above 1.0325$, as breaking it represents the key to turn to decline and head to test the previously recorded low at 1.0220$.

The expected trading range for today is between 1.0300$ support and 1.0465$ resistance

Trend forecast: Bullish

The EURUSD price keeps rising to hit the broken neckline of the head and shoulders’ pattern that its signs appear on the chart, which turns into key resistance at 1.0385$, as the price needs to breach this level to confirm the continuation of the bullish wave that targets testing 1.0455$ as a next main station.

Until now, the bullish trend still suggested for the upcoming period conditioned by the price stability above 1.0325$, as breaking it represents the key to turn to decline and head to test the previously recorded low at 1.0220$.

The expected trading range for today is between 1.0300$ support and 1.0465$ resistance

Trend forecast: Bullish

The EURJPY pair touched 159.95 level yesterday followed by starting to form correctional bullish rebound, affected by stochastic exit from the oversold areas, to notice targeting the broken additional support at 160.20.

This positive rebound won’t form any threat to the main bearish track by settling below 161.65 barrier frequently, to keep waiting to gather the additional negative momentum and manage to renew the negative attempts to reach 159.10 and 158.35 levels soon.

The expected trading range for today is between 159.10 and 160.80

Trend forecast: Bearish