You can catch up with my latest forecasts for next week on FXstreet and as you can see I’m still bullish on the EUR/USD and expect to see the pair test the 1.3500 region in the medium term, before weakening in the longer term. Moving to the USD/JPY the Bank of Japan will have taken their finger off the trigger, as the pair climb towards the psychological 80.00 level and beyond, and following last weeks bullish momentum I am expecting to see this follow through into the longer term despite Friday’s wide spread down bar. The key technical level for the pair is in the 84.03 region of March/April, and should this level be breached then we could even see a test of the 85.52 high of 2011 in the longer term.
Cable recovered some bullish momentum towards the end of the week, breaking back above the psychological 1.6000 level once again, and provided we see the 1.6177 level breached then the outlook for the GBP/USD pair looks positive in the medium term. Look for the pair to test the 1.6400 region in the medium term. Finally with a bullish tone to the EUR/USD we can expect to see the USD/CHF weaken and move away from the solid double top in place on the daily chart at 0.9429.
By Anna Coulling