EUR/USD and GBP/USD go higher as USD/JPY still under pressure
Dollar weakness in the wake of the Federal Reserve meeting has proved to be a boon for the euro and sterling, but has put pressure on USD/JPY.
EUR/USD rallies off support
Early price action suggests a resumption of the upward move for EUR/USD, as the price bounces from $1.1325.
Further gains head towards $1.14, and above this a new higher high is created. This bullish view remains in place unless we see a reversal below $1.125, which may indicate a further decline and the creation of lower lows and lower highs.
GBP/USD edges higher in early trade
For GBP/USD too it looks like the overnight pullback has run its course – the $1.264 area has provided support over the past week, so a drop below this suggests some more near-term weakness.
Alternatively, a resumption of the upward move clears the path to $1.28 and higher.
USD/JPY remains under pressure
For USD/JPY, it is instructive that the brief bounce early this morning has already run out of momentum, having attempted and failed to break above ¥107.20, previously support at the end of May and now evidently resistance.
This would reinforce the bearish view as the current pullback continues. We need to see at least a move above ¥107.30 to suggest the bullish case has recovered some momentum.
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