EUR/USD, GBP/USD and USD/JPY all move higher
In the wake of the FOMC decision we have seen gains for EUR/USD, GBP/USD and USD/JPY, as risk appetite revives.
EUR/USD rally continues apace
EUR/USD showing a straight-line move with no sign of slowing, and is on course to test the area just below $1.22 again, as it did in January and February. From there further gains head towards $1.235.
Rising trendline support from the March low has supported the price over the past month, with no sign as yet of a drop below this. A move below $1.2085 could signal the start of at least a short-term retracement.
GBP/USD targets $1.40 again
The price of GBP/USD continues to edge back to the $1.40 area that marks the limit of its gains for March and April. This is a crucial zone that will need to be cleared decisively to open the way to $1.42.
Short-term rising support from the early April low has, like with EUR/USD prevented any significant downside, and sellers would need to see a drop below $1.3875 to indicate a new move down was at hand.
USD/JPY recovers after Wednesday losses
While USD/JPY fell back from its high in yesterday’s session, it has begun to recover overnight, targeting ¥109 once again and pointing towards further gains after the higher low of last week.
The bullish view remains in place unless we see a drop below ¥108 at the least.
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