The Japanese yen strengthened sharply this morning after the BoJ’s policy fell short of market expectations. With USD/JPY trading near the support zone, the declines are limited to 102 lows.
Later this afternoon, the US advance GDP estimate is due which could keep USD/JPY volatile. The euro continues to struggle to clear the 1.110 resistance level and remains caught within the familiar range of 1.110 and 1.10 price levels.
EURUSD Daily Analysis
EUR/USD (1.1091) has managed to breakout from the consolidated falling wedge pattern on the daily chart but struggles near the 1.110 resistance level. After rising to a high of 1.1119, the euro pulled back to close the day at 1.1078 yesterday.
On the 4-hour chart, price remains supported above 1.1076 level with further upside likely only on a strong breakout above 1.110. To the downside, any pullback is likely to be limited to 1.10.
USD/JPY Daily Analysis
USD/JPY (103.16) has pushed lower following the failure to breakout above the resistance of 106. Price action is seen currently testing the 103 - 102 support level. A breakdown below this support level could shift USD/JPY into bearish territory with the next support seen at the psychological support of 100.
GBP/USD Daily Analysis
GBP/USD (1.3184) was bearish yesterday with prices posting a steady decline from the 1.32 resistance. The consolidation is likely to continue into next week's all important BoE meeting.
On the 4-hour chart, the bias is inclined to the upside but comes with a risk of a breakdown below 1.312 - 1.311. Further declines towards 1.28 - 1.285 can be expected if GBP/USD breaks the minor support. To the upside, price action needs to clear the overhead resistance at 1.34 - 1.32.
Gold Daily Analysis
XAU/USD (1337.60): Gold is looking bullish today with price posting a pullback to just above the support at 1327.50. Further gains can be expected with the resistance at 1350 in focus, but this bullish view comes at a risk of a more firm test of support near 1327.50. The gains are likely limited at this point unless gold manages to break out above the 1350 resistance level.