Forex forecast: USD/JPY, EUR/GBP and AUD/CAD – Brenda Kelly

Dollar-Yen looks very much to the downside, says Brenda Kelly while presenting forex market forecasts. Kelly is joined by Tip TV’s Zak Mir and Nick Batsford.

EUR/GBP pair has hit three-year high today despite banking sector concerns in European and signs of improvement in the UK economy ash highlighted by the sharp rise in the UK manufacturing PMI. Shorts trapped on the wrong side would be pleased to know that Kelly still expects a pull back and cites RSI divergence as the one could yield a corrective move.

Key points:

USD/JPY – There is plenty of risk ahead…Presidential elections, political risks in Europe. Bank of Japan’s (BOJ) credibility is being questioned as well. The psychological level of 100.00 could be pierced to the downside. 50-DMA has proved to be a tough nut to crack this year.

EUR/GBP – Potential for pull back still exists, 0.8780-0.88 are too heady levels in the short-term.

AUD/CAD – Looks poised to re-test recent highs