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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

​​GBP/USD, EUR/JPY and USD/JPY are on the up post FOMC minutes

​​Outlook on GBP/USD, EUR/JPY and USD/JPY as Japan returns from new year holiday.

FOMC Source: Bloomberg

​​​GBP/USD tries to recover

GBP/USD’s slip from its five-month high at $1.2828, made in late December, took it to this week’s low at $1.2611 before it recovered.

​Negative divergence on the daily Relative Strength Index (RSI) acted as an early warning signal for the sell-off which may now have run its course, though. While Tuesday’s $1.2611 low continues to hold on a daily chart closing basis, last Thursday’s $1.2701 low may be reached over the coming days.

​A fall through the $1.2612 to $1.2611 support zone would put the 200-day simple moving average (SMA) at $1.2533 and the December low at $1.2501 on the cards, though.

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

​EUR/JPY tries to regain lost ground

EUR/JPY, which dipped to ¥155.08 on Tuesday while Japan was shut for a new year holiday, tries to build on Wednesday’s gains now that people are back at work and probes the November-to-January downtrend line at ¥157.14. If overcome, the 11 December high at ¥157.68 would be in focus.

​Support below Thursday’s ¥156.08 low can be seen along the December-to-January support line and the 200-day SMA at ¥155.30 to ¥155.16.

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

​USD/JPY on track for third day of gains

USD/JPY continues to flirt with its 200-day SMA at ¥143.10 following hawkish Federal Open Market Committee (FOMC) minutes which pared back rate cut expectations and mentioned quantitative tightening (QT). The cross is in the process of breaking through its November-to-January downtrend line at ¥143.16 and has the September low at ¥144.45 in its sights.

​Support below Thursday’s ¥142.86 low sits at the late July ¥141.96 high and at the 7 December ¥141.63 low.

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

This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. 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. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

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