EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – Japanese Yen Gains Ground As Traders React To BoJ Comments

Key Insights

• China’s central bank provided support to yuan against the dollar, influencing market sentiment in Asia and elsewhere.
• EUR/USD moved away from multi-month lows, trying to climb above the 1.0750 level. 
• USD/JPY made an attempt to settle below the 146.00 level amid worries that BoJ may tweak its ultra-dovish policy. 

U.S. Dollar

U.S. Dollar Index pulls back in the absence of economic news. It looks that potential interventions from China’s central bank have influenced the market sentiment. Chinese yuan is not a part of the currency basket for the U.S. Dollar Index, but its moves may impact the mood of traders.

At this point, it looks that U.S. Dollar Index did not manage to settle above the resistance at 104.45 – 104.70. A move below 104.45 will open the way to the test of the support at 103.40 – 103.65.

EUR/USD

EUR/USD rebounds as traders focus on the general strength of the U.S. dollar. EUR/USD traded near June lows, so some traders were ready to bet on a rebound.

If EUR/USD moves above the 50 MA at 1.0775, it will head towards the nearest resistance level, which is located in the 1.0835 – 1.0850 range.

GBP/USD

GBP/USD is also moving higher in today’s trading session. Most likely, the technical rebound is the main driver for this move.

In case GBP/USD climbs above the 1.2550 level, it will head towards the resistance at 1.2590 – 1.2620.

USD/CAD

USD/CAD pulls back as oil markets are moving higher. Other commodity-related currencies have also received support in today’s trading session.

The nearest support level for USD/CAD is located in the 1.3500 – 1.3520 range. If USD/CAD declines below the 1.3500 level, it will head towards the support at 1.3370 – 1.3400.

USD/JPY

USD/JPY retreats as traders focus on the dynamics of the Chinese yuan. In addition, it looks that BoJ may be ready to tweak its ultra-dovish policy, which will be bullish for the yen.

In case USD/JPY declines below the 146.00 level, it will head towards the nearest support, which is located in the 144.65 – 145.00 range.

For a look at all of today’s economic events, check out our economic calendar.