GBP/USD, EUR/USD, and USD/JPY Analysis: Yen and European Currencies Retreat from Recent Highs


The sharp decline in the US currency that we observed after the Fed meeting slowed down slightly towards the end of last week. Thus, the pound/US dollar currency pair rebounded from 1.2700, the euro/US dollar pair is consolidating after testing 1.1000, and buyers of the US dollar/yen pair found support just below 141.00.


The pound/dollar currency pair failed to strengthen above 1.2750 and rebounded to 1.2600. At the moment, the pair is consolidating in a narrow range, which most likely requires a good fundamental impulse to exit. Today at 14:00 GMT+3, data on the index of industrial orders in the UK for December will be published. Also, at 16:00 GMT+3, it is worth paying attention to the speech of Sarah Breeden, a member of the Financial Policy Committee of the Bank of England. Tomorrow, the UK's core consumer price index for November is scheduled to be published.

On the GBP/USD charts with higher time frames, the price confidently stays above the alligator lines. If the price breaks above the upper fractal at 1.2790, the price rise may happen. We may consider a breakdown of the upward scenario after the price confidently consolidates below 1.2500.


According to the EUR/USD technical analysis, a repeated approach to the psychological level of 1.1000 turned out to be unsuccessful for buyers of the single European currency. After a sharp rebound, the pair lost more than 100 points and is currently trading slightly above 1.0900. Today is an important day for the pair from the fundamental analysis point of view. At 12:00 GMT+3, ECB representative Andrea Enria is expected to speak; a little later, the publication of the consumer price index in the eurozone for November is scheduled. Experts predict a decrease in the indicator, which may contribute to the resumption of the upward movement in the pair.

On the daily timeframe, the price is above the alligator lines; if the range 1.0900-1.0800 holds the status of medium-term support, the price may retest the recent high at 1.1000.


The collapse of the dollar/yen pair slowed down at 141.00. Over several trading sessions, greenback buyers managed to strengthen by more than 200 points. Yesterday, the pair was trading above 143. Further pricing of the pair will largely depend on the comments of the Japanese Central Bank regarding further monetary policy. Also, today at 16:30 GMT+3, it is worth paying attention to the publication of data on the number of building permits issued in the United States for November.

On the USD/JPY daily chart, we are seeing a corrective pullback after a sharp increase. If the pair cannot go above 144.00-145.00, the downward movement may resume.

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