Trading Levels - Cross Currency Pairs

GBP/JPY & EUR/JPY Trading Levels – Fed & ECB Policies in Focus

Posted Wednesday, June 13, 2018 by
Arslan Butt

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

Support     Resistance

129.51      130.13

129.31      130.33

129            130.64

Key Trading Level:    129.82

 

GBP/JPY – Major Trading Levels

Support     Resistance

147.23       147.93

147.02       148.14

146.67       148.49

Key Trading Level:    147.58

 

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About the author

Arslan Butt is our Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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