EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – Yen Rallies As BoJ Hints At Policy Shift

Key Insights

• EUR/USD is trying to climb back above the 1.0800 level. 
• USD/CAD tests the 1.3600 level while oil markets trade near recent lows. 
• USD/JPY suffered a strong sell-off and moved towards 144.00.

U.S. Dollar

U.S. Dollar Index is losing ground as traders react to Initial Jobless Claims report, which indicated that 220,000 Americans filed for unemployment benefits in a week.

In case U.S. Dollar Index settles below the support at 103.50 – 103.75, it will move towards the next support level, which is located in the 101.75 – 102.00 range.

EUR/USD

EUR/USD gained some ground after the release of the Euro Area GDP Growth Rate report, which showed that GDP Growth Rate was -0.1% in the third quarter.

If EUR/USD climbs back above the 1.0800 level, it will head towards the resistance at 1.0925 – 1.0950.

GBP/USD

GBP/USD is slowly moving higher as traders use the recent pullback as an opportunity to increase their long positions at attractive levels.

RSI remains in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

USD/CAD

USD/CAD continued its attempts to settle above the 1.3600 level. Oil markets settled near multi-month lows, which is bearish for commodity-related currencies, including Canadian dollar.

If USD/CAD manages to settle above 1.3600, it will move towards the resistance at 1.3675 – 1.3700.

USD/JPY

USD/JPY dived as BoJ hinted at a shift in policy. BoJ Governor noted that the central bank had several options once it pulled rates out of the negative territory.

In case USD/JPY stays below the 144.65 level, it will head towards the next support at 141.00 – 141.50.

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