Dollar strength boosts USD/JPY, while hitting EUR/USD and GBP/USD again
Renewed strength in the dollar has boosted USD/JPY, but the euro and sterling continue to struggle against the greenback.
EUR/USD retreat from lower high goes on
The 50-day simple moving (SMA) continues to act as a powerful barrier to any upward progress for EUR/USD.
The pair had rebounded from the September low, and seemed set to test parity, but the resurgence of the US dollar last week has meant that, once again, a lower high has been created, and the pair is now heading back to those September lows below $0.96.
Selling the rallies continues to be the approach here, and the sellers are firmly back in charge after the latest brief bounce.
GBP/USD eats away at September rebound
Sterling’s latest bounce against the dollar appears to be well and truly over, and GBP/USD is again making progress in the direction of parity.
The slump and rebound to September lows was more extreme here than for EUR/USD, but the general outlook remains the same.
After rallying to just below $1.15, the pair has turned lower once again. A reviving US dollar has resulted in the creation of a lower high and a reaffirmation of the downtrend. Any bullish view for the near term has been cancelled out following the reversal of last week.
Additional declines will see the price head back towards $1.05 and lower, the record lows for the pair.
USD/JPY pushes on above ¥145.00
Last week’s non-farm payroll report provided USD/JPY with the catalyst to move on above ¥145.00, although it has been a rather circumspect move.
Nonetheless the pair has created a new higher high, with ¥146.75 the next target to watch to the upside. We have seen the uptrend revive in recent sessions, and the consolidation of mid-September has given way to further gains.
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