EUR/USD, GBP/USD and USD/JPY edging higher
All eyes will be on USD/JPY, which has moved up for a second successive day. EUR/USD and GBP/USD are quieter, but have so far avoided further losses.
EUR/USD consolidates near $1.21
The EUR/USD pair’s ascent was given new life on Friday with a push towards $1.21, and while it has edged back over the past couple of days the overall bounce remains intact.
The next target is $1.22, and for the time being the price continues to hold at a sharply ascending support trendline. If this is broken a drop back towards $1.20 is possible.
GBP/USD renews upward move
The previous two days have seen a recovery of GBP/USD back above the 50-day simple moving average (SMA), reversing the growing bearish view of early last week.
This puts a move back to $1.40 in view, while above $1.405 the February peak looms at $1.425. The attempt by sellers to push the price below $1.38 last week failed, and leaves the bullish view in the ascendant for the time being.
USD/JPY begins tentative rebound
A bullish crossover in stochastics and a reversal of the lower highs of the past month may well point towards a renewed move higher, reviving the uptrend of the past few months.
This guardedly bullish outlook is maintained unless the price of USD/JPY reverses back below ¥107.50.
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