EUR/GBP and USD/JPY both renew their declines
The pound continues its ascendancy over the euro, while the dollar is ending 2020 on a weak note against the Japanese yen.
EUR/GBP heads down once more
The last day before the end of the transition period finds EUR/GBP declining, continuing the bearish trend of the past two weeks. After finding resistance around £0.915 the price has fallen back towards the 200-day simple moving average (SMA) £0.8992.
As has been the case throughout the month, the pair then bounce from this indicator, drawing a line in the sand for the bears. A move below £0.895 would be needed to clear the area of support seen over the last four weeks. For the moment, trendline resistance from the mid-December high continues to gap any moves to the upside.
USD/JPY ends 2020 with more losses
The downtrend of USD/JPY shows no sign of ending. After a brief bounce over the past ten days the price has now headed back to the ¥103.00 lows of the past two months.
Below ¥102.87 the price will create a new lower low, confirming the downtrend. As we have seen over the past few weeks, even modest bounces tend to hit a wall of selling, with little sign of any real upside movement.
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