GBP/USD rallying, while USD/JPY hits trendline support
EUR/USD and GBP/USD continue to push higher, while USD/JPY is aiming to hold rising trendline support from the August low.
EUR/USD looks to push higher
The EUR/USD has recovered to sit above the 50-day simple moving average (SMA) of $1.1043, having created a higher low last week around $1.10.
Further upward momentum will see the price challenge the $1.1175 peaks from October, and above this a higher high is created, helping to reinforce the more bullish view. A reversal below $1.10 would be needed to reverse this outlook and suggest a renewed push lower is underway.
GBP/USD targets $1.30 again
The GBP/USD bulls will be looking for the pair to maintain its progress towards $1.30, which has held back progress since mid-October.
The price has been rallying since early October, and if the price can clear $1.30 then it has a chance to target $1.317 and $1.33. A more bearish view would require a daily close below $1.277, so until this happens any drop towards this support zone would be a restatement of the $1.277-$1.30 trading range of the past month.
USD/JPY aims to hold rising trendline
The USD/JPY uptrend has weakened here, but over the past few days the price has stabilised around rising trendline support, with dips towards ¥108.20 finding buyers.
If it can recover above ¥109.00 then a renewed push higher would be in the offing. A bigger retracement would develop if the price drops through the 50-day SMA at ¥108.25.
This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.
Start trading forex today
Find opportunity on the world’s most-traded – and most-volatile – financial market
- Trade spreads from just 0.6 points on EUR/USD
- Analyse with clear, fast charts
- Speculate wherever you are with our intuitive mobile apps
See an FX opportunity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See an FX opportunity?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from just 0.6 points on popular pairs
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See an FX opportunity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
