USD/JPY on the rise as EUR/USD and GBP/USD fall back
While FX markets are calmer compared to indices, they have seen signs of dollar strength that has helped USD/JPY to rally to a three-week high.
EUR/USD opens below 50-day SMA
EUR/USD fell below the 50-day simple moving average (SMA) at $1.2123, and has continued to fall in early trading.
Further declines below $1.205 will bring the 100-day SMA at $1.1949 into view, and then on towards $1.192, where the price stalled in August. For now the sellers appear to hold sway. This will begin to change if we see a move back above $1.22.
GBP/USD returns to trendline support
The GBP/USD price dropped back once again below $1.37 yesterday, and is now testing trendline support from the early-December lows.
A move below support could spell a drop towards the 50-day SMA at $1.3496, or potentially further, down to $1.347. Should support hold then a bounce back above $1.37 becomes possible.
USD/JPY hits three-week high
The USD/JPY price saw strong gains yesterday, with additional upside this morning that seems to point towards a more extended recovery.
The ¥104.39 high from early January may provide some resistance, but if this is broken further upside seems likely, potentially bringing ¥105.45 into view.
This information has been prepared by IG, a trading name of IG Australia Pty Ltd. 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.
Start trading forex today
Trade the largest and most volatile financial market in the world.
- Spreads start at just 0.6 points on EUR/USD
- Analyse market movements with our essential selection of charts
- Speculate from a range of platforms, including on mobile
Live prices on most popular markets
- Forex
- Shares
- Indices
