Strong rallies in EUR/USD, GBP/USD and swift decline in USD/JPY are likely to pause
Outlook on EUR/USD, GBP/USD and USD/JPY following softening U.S. consumer and producer inflation data.
![EUR/USD](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/news-article-image-folder/BG_eurusd_eur_usd_euro_dollar.jpg/jcr:content/renditions/original-size.webp)
EUR/USD trades in 17-month highs
EUR/USD's six consecutive days of swift gains on the back of falling US inflationary pressures have taken the currency pair to levels last traded in February 2022.
The next upside target is the mid-February 2022 low at $1.128 but the cross may lose upside momentum below this level on profit taking ahead of the weekend.
Potential minor support can be made out around the March 2022 peak at $1.1185 and then much lower down around the $1.1095 April high.
![EUR/USD chart](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/article_charts_website_and_platform_images/article_charts_website_images/14072023EURUSD-Daily.png/jcr:content/renditions/original-size.webp)
GBP/USD rallies to 16-month high
When it comes to GBP/USD, weaker-than-expected US consumer and producer price inflation has led to a swift move out of the US dollar which benefitted the British pound with it now trading in 16-month highs versus the greenback at $1.3142.
If overcome, the December 2021 low at $1.3162 might be reached but around it upside momentum is likely to stall as profit taking towards the end of the week looks probable.
Minor support probably comes in around the minor psychological $1.30 mark.
![GBP/USD chart](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/article_charts_website_and_platform_images/article_charts_website_images/14072023GBPUSD-Daily.png/jcr:content/renditions/original-size.webp)
USD/JPY finds support after six consecutive days of falls
USD/JPY fell out of bed in the course of this week as US inflationary pressures diminished with the cross dropping to a near two-month low at ¥137.25.
The low was made marginally above the 200-day simple moving average (SMA) at ¥137.04 before the cross stabilised and headed back up towards the ¥138.44 to ¥138.76 early-June lows.
Together with the breached March-to-May uptrend line at ¥139.28 these levels are expected to thwart any further upside attempt on Friday.
![USD/JPY chart](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/article_charts_website_and_platform_images/article_charts_website_images/14072023USDJPY-Daily.png/jcr:content/renditions/original-size.webp)
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