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​​​EUR/USD, GBP/USD recover from multi-month lows while USD/JPY rallies towards ¥150.00

​​Outlook on EUR/USD, GBP/USD and USD/JPY ahead of Jerome Powell’s speech.

Yen chart Source: Bloomberg

​​​EUR/USD hovers above nine-month low as Q4 begins

Last week the US dollar, yields and oil price saw some minor retracement lower from their lofty heights which gave EUR/USD some breathing space and helped it recover from its $1.0488 nine-month low to last week’s $1.0617 high.

​More important resistance sits between the May low and mid-September low at $1.0632 to $1.0636.

​Last week’s nine-month low was made marginally above major support which consists of the mid-November high, early and December low and January low at $1.0484 to $1.0444.

EUR/USD chart Source: IT-Finance.com
EUR/USD chart Source: IT-Finance.com

​GBP/USD remains above six-month low

GBP/USD tries to recover further from last week’s $1.2111 six-month low ahead of Federal Reserve (Fed) Chair Jerome Powell’s speech this afternoon in which he may indicate that another rate hike is needed this quarter.

​The September downtrend channel resistance line at $1.226 together with Friday’s high at $1.2271 represent initial upside targets.

​Above these levels of minor resistance lies the $1.2309 May low and significantly further up meanders the 200-day simple moving average (SMA) at $1.2437. While remaining below it, the medium-term bearish trend remains intact.

​A fall through the September low at $1.2111 would put the minor psychological $1.20 mark back on the cards.

GBP/USD chart Source: IT-Finance.com
GBP/USD chart Source: IT-Finance.com

​USD/JPY rises to new 10-month high

USD/JPY has risen to a new 10-month high at ¥149.82 despite Japan quarter three (Q3) business sentiment climbing the highest in five quarters. The cross is getting close to the psychological ¥150.00 mark, though, around which the Bank of Japan (BoJ) might begin to talk about currency intervention to prop up Japan’s currency.

​Above the ¥150.00 level lies last October’s peak at ¥151.94. The July-to-October uptrend line at ¥148.76 should offer immediate support, together with Friday’s low at ¥148.53.

​Below it potential support can be found around the ¥147.87 early September high. Further down lies last Thursday’s low at ¥147.33. While this minor support area underpins, the July to October uptrend remains valid.

USD/JPY chart Source: IT-Fiannce.com
USD/JPY chart Source: IT-Fiannce.com

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