Forex Trading Library

Intraday Analysis – Dollar Bounce as BoJ Raises Rate

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GBPUSD falls from the peak
GBPUSD price movement showing decline following BoE announcement, amidst dollar bounce.

The pound fell further as the BoE confirmed they will keep rates higher for longer, leading to a dollar bounce. The pair has dropped over 200 pips on the chart since hitting its peak of just under 1.2900. The bearish recovery is taking shape, with a move to 1.2600 on the radar. A downward continuation could resume soon if 1.2700 and 1.2645 are broken. An upswing will need a 1.2740 break to wipe out the recent losses.


USDCHF triple top break
USDCHF price chart indicating triple top breakout.

The Swiss franc lost momentum after the recent triple top break, which saw the Bulls look for another level. After hitting previous resistance at 0.8885, the US dollar has shown further strength, which indicates sentiment has shifted to the upside. November’s high above 0.9050 is the next target, with a 0.8960 break confirming this. 0.8850 is the first support to ease the buying pressure.

EURJPY hitting resistance
EURJPY price chart illustrating resistance level interaction

The Japanese yen failed in a bid to overcome the recent upturn in the euro. However, the bull’s recent double top halted prices at 163.50, with long higher shadows suggesting a rejection. 162.00 is crucial to keep the rebound intact, as a lack of follow-up buying could threaten a move to 160.40. Buyers could regain control of the direction if they push back above the fresh resistance at 163.35.


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