GBP/JPY & EUR/JPY Trading Levels – Fed & ECB Policies in Focus
The financial markets are trading sideways in the wake of Fed fund rate which is due to come out during the New York session today. Consequently, investors seem to trade the cross-currency pairs ahead of the news release.
As we spoke earlier, Federal Open Market Committee (FOMC) is almost certainly going to increase the interest rate from 1.75% to 2%. Traders are focused on whether the board will signal one or two additional 2018 hikes when it releases updated interest-rate forecasts with the policy decision at 18:00 (GMT).
In addition to this, investors will be focusing on ECB Press Conference which is due on Thursday. According to ECB’s chief economists, the central bank’s announcement will be about tapering the bond-buying program. The bank is supposed to stop bond buying by the end of the year. Any delay will pull down the Euro while a positive message will make it bullish.
Traders are feeling hesitant to enter the market ahead of news releases. In order to cope with this scenario, we can trade the Japanese crosses, including GBP/JPY and EUR/JPY. Let’s take a look at key support and resistance for EUR/JPY and GBP/JPY today.
EUR/JPY – Major Trading Levels
Key Trading Level: 129.82
GBP/JPY – Major Trading Levels
Key Trading Level: 147.58