In the fast-paced world of forex trading, staying up to date with the latest market developments is crucial. Recently, the currency exchange market has been influenced by central bank decisions and economic indicators. In this blog post, we’ll dive into the latest movements of three major currency pairs: EURUSD, USDJPY, and GBPUSD.

EURUSD: A Roller Coaster Ride

The EURUSD pair experienced a roller coaster ride recently, primarily influenced by the Bank of Japan’s (BOJ) decision and the US employment cost index. The rise in the pair was initially driven by a surge in major crosses against the Japanese Yen (JPY) after the BOJ disappointed those hoping for a change in policy. The price reached as high as 1.0674 but stalled ahead of last week’s highs, ranging from 1.0677 to 1.06935.

However, the US employment cost index shifted the focus back to the US dollar, especially with the looming FOMC rate decision. As a result, the EURUSD retraced back towards the swing area between 1.0608 and 1.0616, with the 1.06108 level representing the 38.2% retracement of the move up from the September 2022 low.

USDJPY: A Surge Higher

The USDJPY pair experienced a surge higher after the Bank of Japan’s interest rate decision. This move propelled the pair above the high price from the previous week, which stood at 150.772. It appears that the market has become less fearful of the key psychological level of 150.00, given the Bank of Japan’s stance.

With the 150.00 level in the rearview mirror, the next obstacle for USDJPY is the swing high from October 2022, which lies at 151.938. If this level is breached, it could potentially lead to a multi-decade high for the pair. As of now, the high from last week at 150.77 serves as a close support level.

GBPUSD: Riding the Waves

Similar to EURUSD, GBPUSD saw a move to the upside as traders reacted to the BOJ decision by pushing into the GBPJPY. This pushed the GBPUSD pair’s high price towards the 1.22000 level. However, the enthusiasm was dampened by the higher US employment cost index, causing the pair to rotate back to the downside.

On the downside, GBPUSD has two notable support levels. The first is the 200-hour moving average at 1.2148, and the second is the 100-hour moving average at 1.2127.

Conclusion

The forex market is a dynamic and ever-changing environment. Recent developments in the EURUSD, USDJPY, and GBPUSD pairs have been influenced by central bank decisions and economic indicators. As traders, it’s essential to stay informed about these events and be prepared to adapt to changing market conditions. The FOMC rate decision is a key event on the horizon, and it will likely continue to impact these currency pairs. Traders should keep a close eye on these levels and be ready to react to potential price movements.