Weekly FOREX Forecast Jan 27 - 31stThis is an outlook for the week of Jan 27-31th.
In this video, we will analyze the following FX markets:
USD Index
EURUSD
GBPUSD
AUDUSD
NZDUSD
CAD, USDCAD
CHF, USDCHF
JPY, USDJPY
The USD is retracing from the M+W TF Supply Zone. The sellers are in control... for now. The macro view is that the bullish up trend is not broken. Be mindful of this. For now, selling the USD is in order, and buying the EUR, GBP, NZD, AUD, CAD, CHF, are the best moves. Keep and eye on an indecisive JPY, and wait for a break of the consolidation.
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USDJPY
USDJPY_4HUSDJPY_4H BULLISH
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GOLD FURTHER SELL OFF?! (UPDATE)Gold has pushed up extremely bullish today, so far 320 PIPS. It has stayed below the last ATH of $2,790 keeping the market structure valid so far. BUT, it has surpassed the important price point of $2,780 which makes market structure very difficult to navigate right now.
I'm waiting on the weekly candle closure to get a better idea of what Gold could possibly do next. The next few trading days should develop price action & make future direction more clear. Being patient right now.
BoJ hikes rates, yen pares gainsThe Japanese yen gained as much as 0.8% earlier today but has failed to consolidate these gains. In the European session, USD/JPY is trading at 156.03, dwon 0.02% on the day.
The Bank of Japan hiked its policy rate by 25 basis points earlier today, as expected. This brings the policy rate to 0.5%, its highest level since October 2008, during the global financial crisis. The Japanese yen climbed sharply after the decision but was unable to consolidate these gains.
The BoJ has been signaling that it planned to raise rates at today's meeting, although the BoJ tends to surprise the markets and a rate hike, while expected, was not a given. The BoJ statement expressed hope that this year's wage negotiations would result in strong wage increases, as was the case last year. Governor Ueda has said in the past that he would raise rates provided that inflation was driven by higher wages, which would show that inflation was sustainable. Wage growth has been moving higher and this resulted in today's rate hike.
Japan's inflation rate has been moving higher and the December inflation report, which came out today, showed core CPI climbed to 3%, up from 2.7% in November and in line with the market estimate. The core rate has hovered above the BoJ's 2% target for 2.5 years and at today's meeting, the BoJ upgraded its inflation outlook to above 2% until 2026.
Predictably, Governor Ueda didn't provide a timeline for the next rate hike at his post-meeting press conference, but a May rate hike is on the table if the wage negotiations result in higher wages and inflation does not weaken unexpectedly. Another key factor in the timing of the next rate hike will be President Trump's trade policy. Trump had promised to levy tariffs on US trading partners on his first day in office but has delayed the tariffs until at least Feb. 1. The BoJ will want to see which direction Trump's trade policy is going before raising rates again.
There is support at 154.78 and 153.27
156.49 and 158.00 are the next resistance lines
Gold Hits $2,770 Target – Will It Break Historical Highs Today?Analyzing the 4-hour chart of gold, we observe that the price reacted to the expected levels of $2,755, $2,757, and $2,759 yesterday, followed by a strong breakout to hit our anticipated target of $2,770. Currently trading at $2,777, gold shows no signs of rejection or a significant pullback.
As the final trading day of the week unfolds, the big question remains: will gold surpass its previous historical high of $2,790? With today's growth reaching $2,780, it's just 100 pips away from breaking that record. The opening of New York markets could provide the decisive momentum.
A new historical high and even targets beyond $2,800 seem within reach! Stay tuned for updates, and don't forget to support this analysis with your reactions to keep the momentum going.
Please support me with your likes and comments to motivate me to share more analysis with you and share your opinion about the possible trend of this chart with me !
Best Regards , Arman Shaban
Bank of Japan Raises Rates, Yen StrengthensBank of Japan Raises Rates, Yen Strengthens
The Bank of Japan (BOJ) has raised short-term interest rates to 0.5%, the highest level in 17 years. While this move was anticipated, the currency market responded with a significant strengthening of the yen, with USD/JPY falling by approximately 0.6%.
At a press conference, BOJ Governor Ueda stated that there is no predetermined course for future rate adjustments. Meanwhile, media reports cite analysts’ opinions suggesting that the rate could be raised again before the end of 2025.
Technical analysis of the USD/JPY chart shows the formation of a descending channel (highlighted in red) at the start of 2025. The news of the rate hike enabled bears to launch another attack on the psychological level of 155 yen per dollar—a level that had previously served as support earlier this month. As of the morning of 24 January, bulls are managing to defend this level, but how long can they hold out if bearish pressure persists?
Key points to note:
→ The USD/JPY trend resembles a rounding-top pattern.
→ The yen's strength is also supported by the dollar’s weakness, influenced by some uncertainty surrounding the introduction of international trade tariffs promised by US President Trump.
Today, at 17:45 GMT+3, the Purchasing Managers' Index (PMI) figures will be released, potentially triggering heightened volatility in financial markets.
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Trump, BOJ could be the ideal divergent theme for USD/JPY bearsWe've just seen the BOJ deliver a hawkish hike, where they upgraded their inflation forecasts and cited rising wage pressures. This leaves the door open for further hikes this year. Meanwhile, Trump is now trying to strongarm the Fed and global central banks to lower interest rates immediately. Together, this is the ideal divergent theme currency traders crave. And the icing on the cake for USD/JPY bears would be if Trump begins his attack on a strong USD (which I think he will).
Matt Simpson, Market Analyst at City Index and Forex.com
$JPIRYY -Japan Inflation Rate Highest in Near 2 YearsECONOMICS:JPIRYY 3.6%
(December/2024)
source: Ministry of Internal Affairs & Communications
- The annual inflation rate in Japan jumped to 3.6% in December 2024 from 2.9% in November,
marking the highest reading since January 2023 as food prices rose the most in a year.
Meanwhile, the core inflation rate climbed to a 16-month peak of 3%, in line with estimates.
USDJPY - BoJ Interest Rate Decision?!Here is our in-depth view and update on USDJPY . Potential opportunities and what to look out for. This is a long-term overview on the pair sharing possible entries and important Key Levels.
Alright first, let’s take a step back and take a look at USDJPY from a bigger perspective. For this we will be looking at the H4 time-frame .
USDJPY is currently trading at around 155.800 . Our scenarios are in play after the BoJ (Bank of Japan) Interest Rate Decision is out. Let’s take another look at them with more in-depth outcomes. These scenarios are written from just a TA (Technical Analysis) point of view.
Scenario 1: BUYS
-We broke above 156.700 .
With the break of 156.700 we can expect a possible move up to 158.748. With a a further break of this KL (Key Level) we can expect more upside on the pair potentially reaching top of the long-term range sitting at 161.820.
Scenario 2: SELLS
-We broke below 154.881 .
If we break bellow 154.881 we can expect more downside on the pair even up to 152.000. With breaks of this level we could see even lower levels sitting at around 149.394 or “bottom of the long-term range”.
IMPORTANT KEY LEVELS:
- 161.820; top of the long-term range
- 158.748; breaks above would result in more upside
- 154.881; breaks below would result in sells
- 152.817; breaks below confirming lower levels
- 152.030; breaks below confirming lower levels
- 149.394; bottom of the long-term range
Personal opinion:
It’s not advised to enter into sells or buys before we have a clear break or the BoJ Interest Rate Decision data out. For now we are patiently waiting on either breaks to the upside or breaks to the downside. More volatility on the pair is expected tomorrow so be careful.
KEY NOTES
- USDJPY breaking above 156.700 would confirm buys.
- USDJPY breaking below 154.881 would confirm sells.
- BoJ Interest Rate Decision is tomorrow.
Happy trading!
FxPocket
Potential bearish drop?USD/JPY has reacted off the resistance level which is a pullback resistance that aligns with the 50% Fibonacci retracement and could drop from this level to our take profit.
Entry: 156.59
Why we like it:
There is a pullback resistance level that aligns with the 50% Fibonacci retracement.
Stop loss: 158.13
Why we like it:
There is a pullback resistance level.
Take profit: 154.74
Why we like it:
There is an overlap support level.
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USDJPY Breakout And Potential RetraceHey Traders, in today's trading session we are monitoring USDJPY for a buying opportunity around 156.100 area, USDJPY was trading in a downtrend and successfully managed to break it out. Currently is in a correction phase in which it is approaching the retrace area at 156.100 support and resistance zone.
Trade safe, Joe.
GOLD FURTHER SELL OFF?! (UPDATE)Gold has successfully climbed up towards our 'Option 2' price zone & sellers have been rejecting that zone nicely, pushing price back down.
However, $2,737 - $2,732 is a crucial zone for Gold. If buyers keep rejecting this zone, then there's a chance that price could start another bull run from this price & push upwards of $2,800+. Keeping a close eye here.
USDJPY - 4H Short Opportunities Amid DowntrendFollowing the sharp fall in FX:USDJPY after PPI and CPI news, we expect further downside, potentially reaching the middle or bottom of the channel. 📉
Each push-up could be a short entry opportunity. Even a strong rise below 158 might be a dead cat bounce and a better short entry point. Stay cautious and strategic! 🔻
USDJPY is getting ready for next big movement!Hey guys,
Based on the chart, a major resistance area is broken and currently we are in a range market that I consider it as a simple correction for the next movement of price.
I've defined 3 levels of take profit and with consideration of risk/reward 1/3.7, it be a good trading opportunity.
Good luck!
XAU/USD : Liquidity Grab at $2733, Next Trend Awaits NY Session!By analyzing the 4-hour gold chart, we see that the price finally broke out of the neutral range of $2702-$2714 today, reaching as high as $2733 and clearing liquidity above $2727. After this liquidity grab, gold experienced a slight correction, retracing to $2717. Currently, the price is trading around $2722.
As the New York market opens, we’ll see if gold can establish its next trend. It’s still too early to declare a bearish shift, as the bullish trend remains intact until the price breaks and stabilizes below $2688. For now, consider these levels for positions:
Supply Zones: $2727, $2742, $2753
Demand Zones: $2717, $2711, $2703
Please support me with your likes and comments to motivate me to share more analysis with you and share your opinion about the possible trend of this chart with me !
Best Regards , Arman Shaban
GBPJPY and USDJPY Top-down analysis Hello traders, this is a complete multiple timeframe analysis of this pair. We see could find significant trading opportunities as per analysis upon price action confirmation we may take this trade. Smash the like button if you find value in this analysis and drop a comment if you have any questions or let me know which pair to cover in my next analysis.
Bank of Japan expected to raise rates, yen calmThe Japanese yen is slightly lower on Thursday. In the European session, USD/JPY is trading at 156.25, down 0.16% on the day.
All eyes are on the Bank of Japan, which meets early on Friday. The BoJ is expected to raise interest rates by 25 basis points which would bring the cash rate to 0.50%. The BoJ has said that it will raise rates if it sees higher wage growth, which would indicate that inflation is sustainable. BoJ policymakers have expressed confidence that wages are moving higher and Deputy Governor Himino said last week that many firms plan to raise wages at least as much as last year.
Investors will be keeping a close eye on the BoJ's rate statement. The tone of the statement could be dovish as BoJ policymakers are concerned about President Donald Trump's threats to levy trade tariffs as early as Feb. 1, a move which could destabilize the financial markets. The BoJ will have to be cautious as it gauges the 'Trump factor".
Another factor supporting a rate hike is the poor performance of the Japanese yen, which has declined around 9% in the past three months. The Federal Reserve is sounding more hawkish and might raise rates only once or twice this year. If the BoJ stays on the sidelines again, the yen could fall further.
Overshadowed by the BoJ meeting, Japan releases December core CPI. Japan's core inflation rate has been climbing higher and is expected to climb to 3% y/y, up from 2.7% in November which was a three-month high. The core rate, which is closely watched by the BOJ, has hovered above the central bank's target of 2% for over two years.
USD/JPY is testing support at 156.20. Below, there is support at 155.68
157.04 and 157.56 are the next resistance lines
Japanese inflation and BoJ rate decision coming upLet's have a look what may happen with MARKETSCOM:JAPAN225 and FX_IDC:USDJPY after we get the Japanese data on Friday.
We will be monitoring the data carefully, especially the rate decision, as it will be the first hike since July of last year.
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