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CFDs are complex instruments. 72% of retail client accounts lose money when trading CFDs, with this investment provider. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.

EUR/GBP tries to recover from 5-month low, USD/JPY rallies to 3-month high as GBP/USD tests support​​​

The greenback rallied as US inflation fell less than expected with USD/JPY rallying while EUR/GBP tries to recover and GBP/USD slips due to softer UK inflation print.

JPY/USD Source: Bloomberg

​​​EUR/GBP tries to recover from five-month low

EUR/GBP dropped to £0.8499 before recovering. It thus bounced off the significant July-to-August lows at £0.8504 to £0.8493 below which lies the April 2021 low at £0.8472.

While this level underpins, the December-to-February downtrend line at £0.8542 may be back in view.

Further minor resistance is seen between £0.8547 and £0.8558, Friday's high, the December low and 1 February high, followed by more significant resistance at last Monday’s £0.8572 two-week high. 

EUR/GBP chart Source: TradingView.com
EUR/GBP chart Source: TradingView.com

​GBP/USD weighs on uptrend line

GBP/USD reversed its trend and dropped back to the October-to-February uptrend line and 200-day simple moving average (SMA) at $1.2562-61 which offers support for now.

A slip through Wednesday's $1.2556 intraday low would likely engage the early February low at $1.2519. Resistance sits at Wednesday's $1.2611 intraday high.

The medium-term trend will now be bearish while the cross stays below its $1.2691 Tuesday peak.

GBP/USD chart Source: TradingView.com
GBP/USD chart Source: TradingView.com

​USD/JPY surges higher still

USD/JPY shot right through the minor psychological ¥150.00 mark and so far reached a four-month high at ¥150.88. 

Above it beckon the October-to-November record highs at ¥150.91-94.

Potential slips may find support around the ¥150.16 early October high. 

USD/JPY chart Source: TradingView.com
USD/JPY chart Source: TradingView.com

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