Forex trading plan for Jan. 22
Thursday will be a day of great volatility in EUR/USD as the ECB is expected to announce QE. There’s talk that the regulator still hasn’t made a decision. The market is very nervous & there’s an extremely high risk of a knee-jerk reaction in euro: the pair shoot to the upside and then plunge. As a result, market players should be especially careful with stop & entry levels.
GBP/USD lowered to 1.5100 as the Bank of England released dovish meeting minutes. Pound has strong support in the 1.5050/30 area, but the inability to decisively break resistance at 1.5200 will increase the negative pressure on pound. A close below 1.5050 will confirm a temporary top in the 1.5270 area and open the way to 1.4900 and 1.4813.
USD/JPY got rejected at the Ichimoku Cloud’s top at 118.80 and fell to 117.40. We target 115.80 and 115.55 as the pair's trading below 117.90.
We also recommend you joining USD/CAD bulls on the pullbacks down as the Bank of Canada has lowered its benchmark interest rate.