EUR/USD and GBP/USD drop while USD/JPY slumps following hawkish BoJ meeting
While the dollar continues to gain against the euro and sterling, it has dropped sharply against the yen after the Bank of Japan lifted rates.
![Dollar](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/news-article-image-folder/Adobe_USD_07-11-2024.jpg/jcr:content/renditions/original-size.webp)
EUR/USD driven down by dollar strength
EUR/USD hit a new one-month low yesterday, falling below the 200-day simple moving average (SMA).
While it has stabilised in early trading ahead of tonight’s Federal Reserve bank (Fed) decision, the pair remains under pressure, and further declines will eat into the gains made since late June.
A recovery above $1.083 is needed to suggest that a low has formed.
![EUR/USD chart](http://a.c-dn.net/c/content/dam/igcom-websites/en_GB/charts/2024/07/31/EURUSD_310724.png/jcr:content/renditions/original-size.webp)
GBP/USD edges down
GBP/USD continues to suffer losses, falling on Tuesday after bouncing off Monday’s lows.
Further losses would test the 50-day SMA, with a close below this reinforcing the bearish view. At present there is no sign of a recovery, but a close back above $1.287 might suggest that a new leg higher has begun.
![GBP/USD chart](http://a.c-dn.net/c/content/dam/igcom-websites/en_GB/charts/2024/07/31/GBPUSD_310724.png/jcr:content/renditions/original-size.webp)
USD/JPY drops through 200-day MA
A surprise rate hike from the Bank of Japan, which raised by 15 basis points to 0.25%, drove more downside with USD/JPY.
The price has reached the 200-day SMA for the first time since 9 January, and has broken below the ¥152.00 support area that it hit last week. Further declines head to the ¥150.00 level, while below this the ¥146.30 would be the next level to monitor.
A close back above ¥152.00 would be needed to suggest that a possible low was forming.
![USD/JPY chart](http://a.c-dn.net/c/content/dam/igcom-websites/en_GB/charts/2024/07/31/USDJPY_310724.png/jcr:content/renditions/original-size.webp)
The information 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 Bank S.A. 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 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. See full non-independent research disclaimer.
![](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/Rebrand/Article_banners/Forex-global-component-banner.jpg/jcr:content/renditions/original-size.webp)
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
- Take your position
- 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.