Start the week of June 20, 2022 off right with our Forex forecast, which focuses on major currency pairs.

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USD/JPY

The US dollar initially plunged against the Japanese yen during the past week, but as you can see, the pair has turned around quite drastically to close out the week near the JPY135 level. At this point, if and when we finally leave the JPY135 level in the rearview mirror, it will become yet another opportunity to “buy-and-hold” this pair.

GBP/JPY

The British pound saw very similar action against the Japanese yen during the trading week, plunging to the JPY160 level before finding buyers and turning around again. By doing so, the market looks likely to continue plowing higher, eventually threatening the “double top” near the JPY168.50 level. If it can break above there, then it’s likely that this pair will become more “buy-and-hold” than anything else.

At this point, any dip in this pair should be thought of as a buying opportunity as it is bullish and it does not look like it’s changing anytime soon. Ultimately, this pair could go looking to the JPY170 level.

EUR/USD

The euro was all over the place during the week, which is indicative of the markets in general. Volatility continues to be a major issue with most major asset classes, and I just don’t see this ending. 

Because of this, I think this market continues to be neutral with a downward bias, so if you are a range-bound short-term trader, you are most likely looking for rallies to sell. I would not look for a massive move in this market, but that’s nothing new for the EUR/USD duo as it is one the worst trading pairs out there.

GBP/USD

The British pound had a wild week, slicing through the 1.20 level before turning around. The Bank of England press conference caused chaos, but it does look like the GBP/USD pair is at least trying to do some type of recovery. Nonetheless, I still like feeding rallies and I think that it is probably only a matter of time before the sellers return, especially the closer we get to the 1.25 handle.