Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

EUR/USD, GBP/USD stall while USD/JPY appreciates further​​​

​​Outlook on EUR/USD, GBP/USD and USD/JPY as Japan inflation drops to 17-month low.

USD/JPY Source: Bloomberg

​​​Subdued EUR/USD continues to range trade

EUR/USD's slide from last week’ s high around the $1.10 mark due to pared back rate cut expectations found support along the 200-day simple moving average (SMA) at $1.0847 which held the cross throughout this week.

​Further sideways trading between the 55- and 200-day SMA and Wednesday’s low and Thursday’s high at $1.0845 to $1.0906 remains at hand.

​While the December to-January downtrend line at $1.0917 isn’t bettered, medium-term downside pressure should prevail.

EUR/USD chart Source: IT-Finance.com
EUR/USD chart Source: IT-Finance.com

​GBP/USD recovery nipped in the bud by weak UK retail sales

GBP/USD's rise off this week’s low at $1.2597 on differing rate cut expectations between the US and the UK has taken the cross to Friday’s $1.2714 intraday high before it gave back some of its recent gains on UK retail sales falling the most in nearly three years.

​Significant support for the currency pair remains to be seen between the late December to January lows at $1.2612 to $1.2597.

​Resistance above $1.2714 is to be found at the 22 December high at $1.2744. Further up lie the 2 and 11 January highs at $1.2760 to $1.2786.

GBP/USD chart Source: IT-Finance.com
GBP/USD chart Source: IT-Finance.com

​USD/JPY continues its ascent

USD/JPY has risen to a new six-week high at ¥148.80 as Japanese inflation eased to a 17-month low.

​Next up are the late November highs around ¥149.75 and the psychological ¥150.00 mark. If overcome, the November peak at ¥151.91 would be back in the frame.

​Minor support below Thursday’s ¥147.66 low sits between Tuesday’s high and Wednesday’s low at ¥147.31 to ¥147.10. Further down the area between the 5 and 11 January highs and the 55-day SMA at ¥146.41 to ¥145.99 provides more solid support.

USD/JPY chart Source: IT-Finance.com
USD/JPY chart Source: IT-Finance.com

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.

Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

Start trading forex today

Trade the largest and most volatile financial market in the world.

  • Spreads start at just 0.6 points on EUR/USD
  • Analyse market movements with our essential selection of charts
  • Speculate from a range of platforms, including on mobile

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Tuesday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.