Forex Daily Forecast, Analysis and Prediction

The Japanese Yen continues to strengthen against almost every other currency in spite of efforts from the BOJ to slow its progress. After Bouncing from the Weekly S2 twice in the past 3 weeks, the pair climbed to a 3 week high just shy of 83.00 by 3 pips and then turned Bearish again.

See how one trader profited on a binary options platform based on today's technical analysis of USD/JPY and USD/CAD.

Wall Street closed the best trading week in weeks and the indices are on the way to take over the 2012's picks. The three main indices created bullish reversal pattern during last week, as the most important one, the S&P 500, managed to close above 1400 points and it is just 20 points below the annual high.

Take a look at where the major currencies like EUR/USD and AUD/USD should be heading this week, and plan your weekly Forex trading smartly.

The EUR/USD pair had a strong day on Friday as the markets continue to digest the words of Ben Bernanke during the Federal Reserve’s news conference on Wednesday.

The Bank of Japan announced that it was expanding the purchase program it is currently running by another ten trillion Yen to a total of forty trillion. The program was also expanded to include buying ETFs as well as Japanese Government Bonds. Because of this, in normal circumstances the value of the Yen should have plummeted.

The USD/CAD pair is one of the choppiest of the major pairs. The market is often a real struggle between oil prices, the American employment situation, the building industry in the US, and commodity prices. Because of this, it is one of the most frustrating for people that I know in the Forex markets.

The EUR/AUD daily chart is showing the possibility of a downward extension, or continuation after pulling back to the 38.2% retracement level on its fall from 1.4086 the first week of October 2011, to the 6 month low at 1.2132 in early February of this year.

EUR/USD continued the choppiness for most of the session on Thursday as the markets continue to digest all things European. However, as the US session came to a close, the two notch downgrade of Spain by S&P seems to have accelerated the losses that the pair had been starting to experience.

The GBP/USD has been showing significant strength over the last several sessions even as the United Kingdom has slipped back into recession. This is perhaps because members of the Bank of England openly mentioned the fear of a recession and inflation at the same time.

The Bank of Japan is expected to announce further easing during the session on Friday, in the form of expanded asset purchase programs. The Japanese Government Bonds will more than likely be the vehicle, and the only real question is going to be the amount of bonds they are going to purchase.

The Kiwi has been making higher lows combined with Higher highs for the last 3 days, possibly indicating a break-out to the downside.

The EUR/USD pair had a fairly quiet session considering how important Wednesday was supposed to be for the overall direction of the US dollar. There were various concerns in the stock markets about the fact that the Federal Reserve could go on without further easing, and as a result this would have been good for the Dollar, and bad for stocks.

The Japanese Yen is one of the most interesting currencies to me at the moment, as the Bank of Japan continues the quest to kill it off. The market will certainly have to pay attention to the Bank of Japan on Friday, as it is set to announce a furthering of the easing that it has started to undertake.

The EUR/GBP is a direct measure of strength in these two currencies without the noise of adding the US dollar. With the recent troubles in Europe, it shouldn’t be surprising that the pair has been falling lately.