**Technical Outlook for EUR/JPY, USD/CHF, and Gold**
*Based on analysis from Fawad Razaqzada (original at FXStreet, supplemented with insight from other leading trading sources)*
The foreign exchange market continues to display dynamic swings driven by diverging central bank policies, macroeconomic factors, and technical patterns. Three assets under close watch this week include EUR/JPY, USD/CHF, and gold. Each faces unique pressures as traders parse key support and resistance levels, observe indications from central banks, and monitor macroeconomic releases for trading cues. Let us examine the technical and fundamental outlook for each.
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## EUR/JPY Outlook
**Fundamental influences:**
– The Bank of Japan remains steadfast in its dovish stance, maintaining ultra-loose policy.
– Japanese inflation data, while trending upward, has not compelled the BoJ to signal rapid normalization.
– The European Central Bank, in contrast, has largely ended its lengthy period of rate hikes, yet is not expected to pivot quickly to an easing cycle.
– Rising European yields relative to Japan support a structurally strong EUR/JPY.
– Geopolitical developments and risk sentiment also impact the pair, as EUR/JPY often acts as a barometer for risk-on vs. risk-off sentiment.
**Technical analysis:**
– The pair is trading above its 200-day simple moving average, consistently displaying bullish momentum over recent months.
– The uptrend has found strong support on dips, with buyers stepping in around the 167.00 zone.
– There has been occasional stalling near resistance zones such as 171.50 and psychological levels like 170.00.
**Key technical levels:**
– **Immediate support:** 169.80–170.00 (recent swing low; round-number support)
– **Deeper support:** 168.50 (bullish trend line, previous breakout level)
– **Major resistance:** 171.00–171.50 (multi-year highs), 172.00 (psychological)
– **Trend structure:** Higher highs and higher lows intact, rendering the bias upward unless price closes below 169.80.
**Potential scenarios:**
– Continuation upward towards 171.00 if EUR/JPY holds above 170.00 on closing basis.
– Potential downside correction if risk aversion picks up or BoJ signals less accommodation, with targets at 169.80 and 168.50.
– Sustained closes above 171.00 could open the way to 172.50, with open skies thereafter given the lack of recent historic reference points.
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## USD/CHF Outlook
**Fundamental influences:**
– The Federal Reserve has kept rates elevated, citing persistent inflation, while signaling its intent to be data-dependent.
– The Swiss National Bank cut rates earlier this year and signaled willingness to act further, citing subdued inflation and CHF strength.
– Swiss franc is prized as a safe-haven, which can cause USD/CHF volatility during
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