Dollar weakness drives losses for USD/JPY and boosts EUR/USD and GBP/USD
Quiet trading on Monday has seen further USD weakness, allowing the euro, sterling and yen to make headway against the greenback.
EUR/USD recovery continues
EUR/USD continues to claw its way higher, pushing back above the 200-day simple moving average (SMA) in early trading.
The rally from the September-low has yet to show signs of reversing, and with the move above the 200-day we may see additional momentum should the price be able to push on above $1.05. Additional gains target $1.063, last seen in May and June.
A reversal below $1.02 would be needed to suggest that the price has once again reverted to the downtrend of the past year.
GBP/USD targets continued rebound
A move higher in early trading has seen GBP/USD push back towards the 200-day SMA.
Like EUR/USD, the pair remains in a move higher, one that has put the 2022 downtrend on ice for the time being. Additional gains target $1.225 and then $1.266.
It would need a move back below $1.165 and the 100-day SMA to suggest that the sellers have reasserted control on a longer-term basis.
USD/JPY drops further towards 200-day MA
The breakdown in the uptrend continues here for USD/JPY, as the price pushes below ¥138.00 once again.
A move back to the (still rising) 200-day SMA seems likely, marking the first time the pair has hit this indicator since February 2021. This would still be a higher low if the pair succeeds in bouncing from there.
A mid-month recovery faltered at ¥142.00, and so it would need a move back above here to suggest that a low is in for the pair from current levels.
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