EUR/GBP tops out while EUR/JPY, USD/JPY range trade ahead of BoJ rate decision
EUR/GBP tops out while EUR/JPY, USD/JPY range trade ahead of Friday’s BoJ rate decision at which a 25 basis point rate hike is priced in with a 88% probability.
EUR/GBP tops out
EUR/GBP is seen gradually coming off Monday's £0.8473 high, made marginally below the 24 June 2024 £0.8478 high. This area is likely to at least short-term cap. If not, the £0.8500 region might be next in line.
Support above the 200-day simple moving average (SMA) at £0.8420 can be spotted at the £0.8434 early October high.
EUR/JPY remains bid
EUR/JPY flirts with Monday's ¥162.31 high but while it caps on a daily chart closing basis, it remains within a short-term downtrend.
An advance and daily chart close above ¥162.31 would likely engage last week's ¥162.89 high.
Were the recent downtrend to continue, the current January low at ¥159.70 would be targeted. Further down lies the September low at ¥158.11.
USD/JPY range trades
USD/JPY's descent from its 6-month high at ¥158.88 to its 55-day SMA at ¥154.79 is being followed by further sideways trading. Below Tuesday's ¥154.78 low the September-to-January uptrend line can be seen at ¥154.50.
A rise above Monday's high at ¥156.58 is needed for the November peak at ¥156.74 to be reached and then the ¥158.00 region.
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