EUR/USD edges down as USD/JPY holds firm after yesterday’s drop
Monday’s volatility was short-lived, with both EUR/USD and USD/JPY stabilising in early trading.
EUR/USD edges down after Monday’s volatility
The EUR/USD rally suffered its most severe knock in weeks yesterday, falling sharply but then rebounding in thin pre-Christmas trade.
The price remains within the November uptrend, yesterday’s low having approached, but not tested, rising support. A move below $1.21 would break this support, and potentially bring the 50-day simple moving average (SMA) at $1.1921 into view.
USD/JPY stabilises after yesterday’s drop
Just as EUR/USD went up from the lows, USD/JPY fell back yesterday after attempting to rally during the early part of the session.
Last week saw it create a new lower low, moving below ¥103 for the first time since March. The long-term downtrend continues to hold sway, and rallies towards the 50-day SMA have proven to be useful indications of impending lower highs. With the price now stretched away from the 50-day SMA, the chance of a snap-back rally cannot be discounted.
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.
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.
