Created on December 04, 2025

• USD/JPY slips amid ongoing volatility, but key levels between ¥155 and ¥158 remain central to near-term direction.
• Broader strength still favors the dollar, with FOMC guidance likely to determine the next significant move.

The US dollar has fallen a bit against the Japanese yen during the trading session on Wednesday, as we continue to see a lot of noisy trading. The 155 yen level is an area that has previously been supported over the last couple of days, and therefore, if we bounce from here, it would not be a huge surprise.

If the market were to break down below the 155 yen level, then it opens up the possibility of a move down to the 153 yen level, with the 50-day EMA sitting right around the same area. The market turning around and breaking above the 156 yen level opens up the possibility of a move to the 158 yen level. The 158 yen level is an area that has seen resistance previously. And I think if we can break above there, it could open up the possibility of a move to the 160 yen level. Ultimately, this is a market that I think continues to see a lot of volatility and choppiness, but really with the interest rate differential coming into play.

US Dollar Isn’t Dead Yet

I think you still see US dollar strength overall. A lot of this is going to come down to the FOMC press conference, not the interest rate decision next Wednesday. And if it sounds remotely hesitant to cut rates for the next multiple meetings, then I suspect that’s where we start to bounce pretty significantly. Regardless, you get paid to hold this pair. I’ve been long for this market in various sizes for several months now, and nothing’s really changed at this point.

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 04, 2025

• EUR/USD pushes higher but faces notable resistance, with broader direction likely hinging on next week’s FOMC decision.
• Diverging economic trajectories between the U.S. and Europe continue to favor dollar strength on larger pullbacks.

The euro has seen another push higher during the trading session on Wednesday, but it does look like a market that I think is running into a little bit of a resistance barrier. In the short term, I suspect that the euro will probably continue to at least attempt to recover.

But in the longer term, a lot of this is going to come down to the fact that the United States will expand and grow next year, while Europe probably won’t or at least will in a much smaller manner than the American economy.

FOMC as the Next Major Driver

So with that being said, I’m looking at little rallies like this as opportunities to short, but I also recognize that right now we’re waiting on the FOMC.interest rate decision next Wednesday, and probably more importantly, the press conference afterwards. So that is going to be the next major driver, would be my guess, because if Jerome Powell suddenly sounds extraordinarily dovish, that will send this pair to the moon. But some of the leading indicators are starting to suggest that maybe massive rate cuts just aren’t going to be coming. And if that’s the case, then you’ve got a situation where the US dollar will eventually strengthen.

If we break down below the 1.14 level, this is a market that I think could really take off to the downside, reaching the 1.11 level. Keep in mind that the Euro against the US dollar is typically a very choppy and slow place to be. So even getting to 1.11 might take a couple of weeks. This is a market right now that’s just kind of searching for an external force to move it.

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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.

Platinum price is affected by the contradiction between the main indicators, especially by stochastic reach below 80 level, to force it to provide new sideways trading, to keep its stability near$1660.00.

Reminding you that holding above $1605.00 level, will make it form extra support to increase the chances of gathering the required bullish momentum to reach $1695.00, and surpassing this obstacle will extend the trading towards the positive stations that begin at $1745.00.

The expected trading range for today is between $1620.00 and $1695.00

Trend forecast: Bullish

Despite the positive factors in the last period, especially unionism between the main indicators besides the stability of the EURJPY pair’s price within the bullish channel’s levels, the continuation of forming extra barrier at 181.70 level reinforces the dominance of the sideways bias in the current trading.

Therefore, we will keep waiting for breaching the barrier and providing positive close above it to confirm its readiness to achieve new gains by its rally towards 182.35 initially, reaching the next main target near 183.05.

The expected trading range for today is between 180.65 and 182.35

Trend forecast: Bullish

– Written by


Frank Davies

STORY LINK Pound Sterling to Dollar Forecast: GBP/USD Rises on PMI Boost and Fed Shift

The Pound to US Dollar exchange rate (GBP/USD) climbed on Wednesday as markets leaned further into expectations of a more dovish Federal Reserve.

At the time of writing, the pair traded near $1.3281, roughly 0.5% higher than Wednesday’s opening levels.

The US Dollar (USD) retreated on Wednesday as speculation intensified that Kevin Hassett will be nominated to replace Jerome Powell when his term ends in May.

Investors have steadily increased their bets on a December Fed rate cut, with current pricing pointing to an 87% probability of a 25bps move.

But attention is shifting beyond the near-term decision. Markets increasingly believe the Fed could adopt a more aggressive easing stance throughout 2026, particularly if Hassett — seen as sympathetic to President Trump’s preference for looser monetary policy — becomes Chair.

Reports that interviews with other shortlisted candidates have been halted abruptly added weight to expectations of Hassett’s appointment, placing further downward pressure on the US Dollar as traders brace for a potentially faster-cutting Fed.

The Pound (GBP) found support on Wednesday after the UK’s latest services PMI was revised higher.

The November index was lifted from 50.5 to 51.3. While still below October’s 52.3, the stronger print eased concerns about the sector’s loss of momentum.

The survey also signalled a cooling in price pressures — a positive sign for the Bank of England (BoE). However, evidence of falling employment further cemented expectations that the BoE remains on course to lower interest rates again before the year’s end.

GBP/USD Forecast: Strong US Inflation to Give USD Fresh Support?

Looking ahead, the key event for the Pound to US Dollar exchange rate will be Friday’s release of the Fed’s preferred inflation measure: the core PCE price index.

If September’s reading holds at 2.9% or comes in hotter, it may temper recent dovish speculation and offer the US Dollar some relief.

Conversely, a cooler print would likely strengthen expectations of faster rate cuts in 2026 and put renewed pressure on the Dollar.

With no major UK data due, Sterling is likely to drift through the second half of the week, taking its cue from US economic releases and broader market sentiment.

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David Woodsmith

STORY LINK British Pound to Dollar Forecast: GBP Steady with Fed Cut Odds Above 85%

The Pound to Dollar exchange rate (GBP/USD) hovered near 1.3200 as the dollar regained some ground and Sterling struggled to build momentum.

Markets remain heavily priced for a December Fed cut, with upcoming ADP and ISM data likely to shape expectations.

Medium-term projections still favour a softer dollar, though BoE easing could temper Pound Sterling gains.

GBP/USD Forecasts: Stall Above 1.32

The Pound to Dollar (GBP/USD) exchange rate tested support below 1.3200 on Tuesday before trading close to this level as the dollar recouped some ground while the Pound was unable to make headway.

ING expects renewed dollar losses; “We think the conditions for USD weakening persist after yesterday’s rollercoaster ride.”

JP Morgan forecasts GBP/USD gains to 1.37 by March as the dollar loses ground.

On a near-term view, markets are waiting for ADP jobs and ISM services-sector releases on Wednesday.

ING commented; “Yesterday’s ISM manufacturing didn’t move pricing for a December cut as expected: prices paid were a bit higher than expected, but the headline index print was soft. We expect that the remainder of the week will validate the market’s dovish pricing for next week’s Fed meeting.”

Markets are still pricing in over an 85% chance of a Fed rate cut next week.

According to ANZ head of G3 economics Brian Martin; “I really do think the Fed needs to cut interest rates, and not just cut rates in December, but follow through with further cuts next year.”

The medium-term Fed outlook will also be a key element for markets, especially with on-going speculation that Kevin Hassett will be nominated to be the next Fed Chair and act as a “shadow Chair” over the next few months.

Scotiabank noted that markets are reluctant to price in rates dipping below 3% and added; “It will be hard to persuade some policymakers of the merits of that argument in the near-term but leadership lobbying to lower the Fed funds target rate significantly without clear justification would raise concerns about political influence on the FOMC, representing a clear threat to USD stability.”

As far as the UK economy is concerned, the OECD has raised its 2026 forecast for GDP growth to 1.2% from 1% and sees growth of 1.3% in 2027.

The organisation is still wary over the risk of sticky inflation.

According to the OECD; “Elevated inflation expectations and potential second-round effects from increases in payroll taxes and the minimum wage, as well as from high food inflation, constitute an upside risk to prices.”

It called for the Bank of England (BoE) to maintain a cautious stance on rate cuts, but traders are pricing in around a 90% chance of a cut this month.

MUFG noted relatively hawkish comments from MPC member Greene on Monday, but added; “with only one additional member likely required to vote for cut to get a majority on the MPC, we still believe the BoE is on track to cut rates, and encourage a weaker pound heading into year end.”

According to Scotiabank; “The outlook for relative central bank policy remains supportive for the GBP, as we expect the BoE to ease less than the Fed.”

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TAGS: Pound Dollar Forecasts

Created on December 03, 2025

• The US dollar continues to firm against the yen, with volatility masking an underlying upward bias.
• A wide rate differential and supportive U.S. outlook keep buyers in control, making dips attractive while major support remains intact.

The US dollar rallied a bit against the Japanese yen during the trading session on Tuesday, as we continue to see this market trying to recover. Ultimately, I think we are probably in a timeframe of noisy volatility, and that noisy volatility will continue to be the overall theme, I think not only of this pair, but probably several others.

Looking back over the last several months, we have seen a lot of strength coming out of the US dollar, and sooner or later, there has to be a little bit of a pullback. And I think that’s all we are seeing here. Yes, the Federal Reserve has an interest rate decision next Wednesday, and it very well could be an interest rate cut. But the reality is, the interest rate differential between these two currencies will remain wide enough to drive a truck through.

Rate Differential Supports the Trend

And with that being the case, I just don’t see why you would get short of this market unless we get some type of financial meltdown. That being said, the first quarter of 2026 should be very strong for the US economy, from some of the leading indicators that I follow. And therefore, I think the US dollar will continue to strengthen against most currencies. I don’t necessarily think this is a scenario where it’s going to be straight up in the air, but I do recognize that there’s a very real world in which there is just a grind higher.

I think that ends up being the overall theme here, and with that, I remain a buyer of dips. I have no interest in shorting this market, nor would I even be concerned about the trend until we broke down below the 153 yen level, where the 50-day EMA and previous support and resistance show themselves.

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.