1. GBP/USD Analysis:

News Summary:

The key factor that could truly allow the pound to break out of its range remains the trajectory of services inflation. While the current reading of 4.5% came in slightly below expectations, it is still some distance from the target. Only if services inflation shows a sustained and stable decline over several consecutive months is the market likely to scale back expectations for the magnitude of rate cuts, thereby easing the interest-rate differential pressure on sterling. Overall, the rebound in UK inflation briefly heightened market anxiety, but the relatively moderate performance of core and services inflation quickly reassured investors.

Trend Analysis:

We can see GBP/USD continues to move in a sideways-to-higher consolidation on the H4 timeframe, holding above the 48 hours moving average. Meanwhile, the MACD double line and histogram bars are expanding around the zero line. The sell limit could be placed, stop loss is necessary.

Today's Key Price Levels:

Key Support Levels: [1.3400]

Key Resistance Levels: [1.3600]
Pivot Points [1.3440]

2. USD/JPY Analysis:

News Summary:

The Bank of Japan is expected to keep interest rates unchanged today while delivering a cautiously optimistic message, maintaining that the economy will continue its moderate recovery. This assessment provides justification for further increases in borrowing costs, which remain at historically low levels. The BoJ governor is unlikely to offer clear guidance on the timing of the next rate hike, as Prime Minister Sanae Takaichi’s decision to call an early general election next month has triggered a fresh bout of market volatility, complicating the policy outlook.

Trend Analysis:

On the H4 chart, we can see USD/JPY is staging a choppy rebound, running above the 48 hours moving average. Additionally, the MACD double line and energy bars are expanding around the zero axis. The buy limit could be set, stop loss is mandatory.

Today's Key Price Levels:

Key Support Levels: [157.70]

Key Resistance Levels: [160.00]

Pivot Points [158.20]