3 Technical Forex Setups With High Profit Probability: EUR/USD, USD/JPY, GBP/USD

investing.com:

Moves by major central banks are set to spark trading opportunities in key currency pairs such as EUR/USD, USD/JPY, and GBP/USD.

Investors will closely monitor the Fed, which is expected to postpone the first interest rate cuts to May/June.

Notably, being a presidential election year, the Fed might exercise caution to maintain impartiality and financial market stability, potentially limiting major movements before the election.

In the British pound's case, a potential pivot may accelerate due to a combination of decreasing inflation and recent economic indicators pointing towards an impending recession.

On the other hand, the USD/JPY pair is approaching long-term highs. The Bank of Japan currently faces a dilemma with weak GDP readings and lower inflation forecasts, creating an unfavorable environment for interest rate hikes.

However, the intense supply pressure on the Japanese yen may leave BOJ officials with limited choices.

Meanwhile, EUR/USD, despite facing strong supply-side pressure testing the 1.07 area amid periodic dollar strength, continues to find support.

Let's take a deeper look at the technical charts of these three currency pairs as they offer excellent opportunities at the moment.

The demand zone established in November and defended in December has once again prompted a rebound, suggesting further bullish developments.

Buyers could charge higher, targeting the supply zone near 1.0850. Breaking this zone would pave the way for an advance toward local highs, situated just above the round level of 1.11.

Conversely, a drop below 1.07 opens the door to additional declines, aiming for levels below 1.05. The likelihood of this scenario increases if the Fed delays the anticipated pivot, expected to commence no