EUR/USD, GBP/USD resume medium-term descents while USD/JPY rally stalls
EUR/USD, GBP/USD depreciate as investors believe the BoE and ECB may cut their rates before the Fed. USD/JPY rally stalls.
EUR/USD's post-Fed rally has been short lived with the cross trading back below its 200-day simple moving average (SMA) at $1.0838, painting a more negative picture and changing our medium-term outlook to a bearish one.
The late February-low at $1.0797 represents the next downside target while the 55-day SMA at $1.0853 and the 22 February-high at $1.0888 resistance.
GBP/USD's bearish reversal from Thursday's $1.2803 post-Fed meeting high and fall through the September 2022-to-March uptrend line at $1.2687 changes our forecast to a bearish one.
The 200-day SMA at $1.2591 together with the December-to-February lows at $1.2519 to $1.25 are back in play. Immediate resistance is seen along the breached uptrend line and 55-day SMA at at $1.2687.
USD/JPY's rapid advance has briefly taken the cross above its ¥151.73 October peak to ¥151.86 before giving back some of its recent gains ahead of the weekend.
While Thursday's ¥150.27 low underpins, immediate upside pressure will be maintained, though. While this is the case, the ¥151.91-94 late October and November peaks will remain in sight. Minor support above ¥150.27 sits in the ¥150.88-83 region.
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