In today’s Forex Forecast, we share the technical outlook and targets for EUR/USD and USD/JPY with Wilson Leung, Director at Trendsetter FX.
USD/JPY: Respectable range, buy the dips
Leung believes that the USD/JPY pair is in a respectable range of 121.74 – 118.06. He maintains a buy on dips approach on the pair, noting that the cross broke below the key support at 118.60, but having failed to close below this supports the upside view.
He suggests buying the dips towards 119 area for an upside target towards the 121 level.
EUR/USD: All eyes on Draghi
The recent upside move in the EUR above 1.1460 cleared out the bears but the pair came down again after dovish comments from a ECB member.
Leung believes that we might have seen a top in the EUR, and even if nothing key happens in the ECB meeting, it is not going to turn the tide as FOMC next week will be key.
Leung notes that we have seen a intraday rebound on the pair on short-covering, but maintains a sell on rally approach on pair, targeting 1.1250 levels. Although he maintains a bearish view on the cross, he warns of any move above 1.1425 which would negate his bearish outlook on the EUR.
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