EUR/USD and GBP/USD try to move higher, while USD/JPY steady after losses
A recovery in risk appetite has lifted EUR/USD and GBP/USD, while USD/JPY is recovering after some recent weakness.
EUR/USD rebound continues
The EUR/USD managed a decent bounce on Friday off the 50-day simple moving average (SMA), and now bulls wait to see if a follow-through develops to cement a higher low.
Having recovered on Thursday and Friday last week, the price now needs to continue on above $1.1035, which was resistance over the past week. This would cement the bullish view and raise the possibility of a move back to the July highs.
A close below $1.09 is needed to negate this view.
GBP/USD moves cautiously higher
Here the GBP/USD looks less certain that a higher low is in place, and more like a continued pullback is in order.
While the price rebounded from the lows of last week in a similar fashion to EUR/USD, it will need a close above $1.28 to cement a possible higher low. This might then suggest a new leg higher is beginning, targeting $1.30 and then the July highs around $1.314.
This bullish view is negated with a move back below $1.265
USD/JPY higher after recent losses
After two days of losses the USD/JPY has edged higher this morning, and buyers will be hoping it holds above the 50-day SMA.
A recovery above ¥143.00 might indicate that a recovery has begun, and this might then see the price target ¥143.90 and then on to ¥145.00.
A drop back below ¥141.00 puts the sellers in charge and then might suggest further losses towards ¥138.00.
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