– Written by


David Woodsmith

STORY LINK GBP/USD Forecast: Pound Sterling Reclaims Ground Above $1.38

The Pound to US Dollar exchange rate (GBP/USD) edged higher on Thursday, with the pairing moving back towards the four-year high reached earlier in the week.

At the time of writing, GBP/USD was trading near $1.3844, up roughly 0.2% from the start of Thursday’s session.

The US Dollar (USD) remained on the back foot at the beginning of European trade on Thursday, extending a late-session retreat from the previous day.

After enduring sustained selling pressure for much of the past fortnight, the greenback had shown tentative signs of stabilising ahead of the Federal Reserve’s latest policy announcement on Wednesday.

As expected, the Fed left interest rates unchanged at its first meeting of 2026 and adopted a relatively firm tone, reinforcing expectations that borrowing costs will also remain on hold through at least March and April.

However, rather than restoring confidence in the currency, the decision appeared to underscore the Dollar’s current vulnerability. Investors continued to view the USD through a pessimistic lens, allowing selling pressure to resume.

Although Sterling managed to advance against the US Dollar, it failed to build similar gains versus other major currencies on Thursday.

The Pound remained rangebound, with thin trading conditions persisting amid a continued lack of impactful UK economic releases.

GBP/USD Forecast: Fed Chair Speculation to Drive Volatility?

Looking ahead, the Pound to US Dollar exchange rate could see heightened volatility towards the end of the week if President Trump reveals his nominee to succeed Jerome Powell as Fed Chair.

Earlier comments from Trump suggested an announcement could come ‘soon’, alongside claims that interest rates will ‘come down a lot’ once his preferred candidate takes charge.

If no announcement materialises, attention is likely to shift to the latest US producer price index, where signs of easing factory gate inflation could apply fresh pressure to the US Dollar.

Meanwhile, in the continued absence of meaningful UK data, the Pound may struggle to develop a clear directional bias as the week draws to a close.

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TAGS: Pound Dollar Forecasts

The Japanese yen has staged a strong comeback in the past few days as investors focused on its potential intervention and the latest actions by the Federal Reserve. The USD/JPY pair was trading at 153, down by 4% from its highest level this year.

Concerns about Japanese yen intervention remain

The USD/JPY exchange rate has been in focus in the past few weeks as concerns about the Japanese economy continued. It crashed last week after media reports suggested that Donald Trump’s administration was willing to help Japan intervene.

The pair then rose slightly this week after Scott Bessent announced that the US will not intervene. This is notable as Bessent is a well-known figure in the forex industry because of his role in collapsing the British pound in the early 1990s.

Market participants are concerned on whether Japan will succeed in going solo in intervening in the forex market. In a note, an analyst from CBA said:

“Without US involvement, any intervention by the Ministry of Finance  alone would be far less effective in countering downward pressure on the yen, meaning any post-intervention gains are likely to fade quickly.”

Why the Japanese yen needs intervention 

The Japanese yen has been in a freefall in the past few months, with the USD/JPY exchange rate soaring from a low of 139 in April last year to a high of 160 this year.

This performance accelerated after Sanae Takaichi became the prime minister and embraced Shinzo Abe-like policies. Her initial policy was a large stimulus program that she aimed at solving the inflation situation. She now plans more stimulus, including tax cuts if she wins the election in February.

Takaichi also took a more hawkish stance on China, a top trading partner. She vowed that her government would step in to help Taiwan if Beijing attacked, a move that infuriated Beijing.

The Japanese yen has crashed despite the ongoing divergence between the Federal Reserve and the Bank of Japan (BoJ). The BoJ has embraced a more hawkish tone and hiked interest rates to the highest level in three decades. It has hinted its willingness to continue hiking rates this year.

The Federal Reserve, on the other hand, left interest rates unchanged on Wednesday, and analysts believe that its next move will be lower. Besides, Donald Trump will soon announce the potential Jerome Powell replacement. He has maintained that the potential replacement will be one who will be willing to cut rates aggressively.

USD/JPY technical analysis

The daily timeframe chart shows that the USD/JPY exchange rate has suffered a harsh reversal in the past few days, moving from a high of 159.40 to 153 today. It remains below the crucial support level at 154.3, its lowest level in December last year.

The pair has crashed below the 23.6% Fibonacci Retracement level. It also moved below the 50-day and 100-day Exponential Moving Averages, and is now in the process of forming a bearish flag or pennant pattern.

Therefore, the most likely scenario is where it continues falling, potentially to the 50% retracement level at 150.

The post USD/JPY forecast: What next for the soaring Japanese yen? appeared first on Invezz

Natural gas price continued providing weak sideways trading, affected by the contradiction between the main indicators besides forming a significant obstacle against the attempts to renew the bullish attack, fluctuating near $3.850.

There is a chance for forming new bearish waves, to press on the moving average 55 at $3.450, and surpassing it might extend the losses towards $3.050, facing the extension of historical support, while the price success in surpassing $4.000 level and holding above it will allow it to renew the bullish attempts, to expect targeting $4.220 and $4.450 level.

The expected trading range for today is between $3.450 and $4.050

Trend forecast: Bearish

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.

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.

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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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.

Ready to trade our EUR/USD analysis and predictions? Here are the best European brokers 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 January 28, 2026

The British pound has been somewhat noisy against the Japanese yen during trading on Tuesday, but that will have been expected as the Bank of Japan and others have intervened.

GBP/JPY

The British pound has been somewhat noisy against the Japanese yen during trading on Tuesday, but that will have been expected as we’ve recently seen some form of intervention to favor the Japanese yen in order to combat some of the massive selling pressure that has been a mainstay here.

That being said, the British pound does look like it is fairly well supported at the 210 yen level, and not only is it seeing a bit of structural support as this was an area that was supported previously, we also have the 50-day EMA ranked there as well, which of course offers a significant amount of support.

Technical Support and Market Outlook

If we were to break down below the 50-day EMA, the 205 yen level could be the target, possibly even the 200-day EMA, which is currently trading at the 202.45 level and rising.

All things being equal, this is a market that I think remains very bullish, and of course you do get paid at the end of every day to hang onto it, so I’m still bullish on this pair. I also recognize that we need some of the noise to soften in the yen denominated markets overall in order to get large with the position.

The US dollar is struggling quite a bit more against the yen than the British pound, but that makes sense considering the US dollar has its own concerns. That is why I’m focusing on this pair, because I’m trying to match up strength with inherent weakness. Yes, the central banks may have done something, but that’s not the sign of a strong currency; quite frankly, it’s mainly the opposite that it gives an impression of. All things being equal, this is a pair that I think will try to get to the 215 yen level eventually.

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.

The GBPJPY pair kept its stability since yesterday’s trading above 210.40 level, increasing the chances of gathering the required bullish momentum to motivate the suggested bullish trend, reminding you that the initial positive target is located near 211.70 level, and surpassing the moving average 55 will reinforce the chances of recording extra gains by its rally towards 212.15, to press on the previously broken bullish channel’s support that appears in the above image.

Facing new bearish pressure and reaching below the previously mentioned support will confirm its surrender to the bearish corrective bias dominance, which forces it to suffer extra losses by reaching 209,60 followed by 209.00.

The expected trading range for today is between 210.65 and 212.15

Trend forecast: Bullish