EUR/USD, GBP/USD and USD/JPY on the back foot as support comes into play
EUR/USD and GBP/USD consolidate after recent decline, while USD/JPY falls back towards key support in the wake of a BoJ rate decision.
EUR/USD consolidates around Fibonacci support
EUR/USD has been consolidating around the 76.4% Fibonacci support level of $1.1595 over much of the week, with the price showing signs of a potential resurgence in the wake of Monday’s declines.
The intraday trend remains bullish unless the price breaks below the $1.1572 swing low. With that in mind, it makes sense to look for another move higher until we see support break.
GBP/USD breaks through support after recent uptrend
GBP/USD has been on the rise of late, with the price moving back towards the crucial $1.3913 swing high. A break above that level is ultimately required to bring the wider bearish trend to an end.
With that in mind, there is a chance of further downside given the move through $1.3742 yesterday. To the upside, a move back above $1.3829 would be required to bring the short-term bullish trend back into play.
USD/JPY falling towards support after post-BoJ
USD/JPY has continued to drift back towards the ¥113.41 support level despite a Bank of Japan (BoJ) rate decision that saw them keep rates steady and downgrade growth for this year. A dovish BoJ did little to stifle the yen, with the pair declining back towards ¥113.41 following a recent trendline break.
That level also coincides with the 76.4% Fibonacci support level. Ultimately, we have a very clear bullish trend in play here and thus we would need to see ¥113.41 and ¥113.00 taken out for a more bearish short-term picture to come into play.
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