EUR/USD and GBP/USD cling to gains while USD/JPY remains near ¥149.00
For now EUR/USD and GBP/USD are holding up against the dollar, while the yen is being given support by Japan’s intervention in FX markets.
EUR/USD nudges the 50-day SMA
The general recovery in risk assets has lifted EUR/USD from its September low, but now the pair has returned to the 50-day simple moving average (SMA), which has been such a barrier over the past few months.
With the downtrend still firmly in place sellers will be on the lookout for a fresh turn lower, perhaps marked by a turn lower in stochastics and then followed up by a bearish MACD crossover. This would then bring the September lows around $0.954 into view.
GBP/USD holds firm
Sterling continues to cling on to the $1.13 level, having fended off a turn lower at the end of last week. For GBP/USD this might provide scope for a push back to the 50-day SMA ($1.1399), while the $1.15 highs from early October loom beyond this.
As with EUR/USD, the overall downtrend is still in place, and so any turn lower would be viewed as a lower high, targeting $1.10 and lower.
USD/JPY holds close to ¥149.00
Japan’s intervention in FX markets continues to prevent further upside here for the time being for USD/JPY, although the price has bounced back from the lows seen on Monday.
The modest retracement from last week’s highs is another indication of the strength of the move higher. A continued drift lower might brin the 50-day SMA into view.
Overall, however, the uptrend is still ongoing, although it has paused for the time being.
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