EUR/USD and GBP/USD fall as USD/JPY rally stalls
A turn to a more risk-averse atmosphere has hit EUR/USD and GBP/USD, while USD/JPY’s bounce has stalled for now.
EUR/USD in retreat again
The EUR/USD weakness over the past two days shows no sign of stopping yet, with the continuing losses wiping out the bounce from late last week.
Further declines target $1.118, the low from last Friday, and with a descending channel firmly in place more downside seems likely. Alternatively, if we can see a reversal back above $1.126 then we have a higher low and the makings of a potential move higher, targeting $1.135 and then on above $1.14.
GBP/USD fights to hold $1.24
A fresh lower high was seen over the past two days as GBP/USD failed to hold above $1.25.
The downward move appears to have stalled at $1.24 for the time being, but a bounce needs to clear $1.255 to provide a more bullish view. On the other hand, below $1.24 the price heads back to last Thursday’s low at $1.235 and then below this the bearish view is further reinforced.
USD/JPY rally hits the buffers
The USD/JPY’s dramatic decline of Tuesday was cancelled out by steady gains made over the past 36 hours.
While the price has returned to ¥107.00, given the market-wide turn in risk appetite it may be hard for the pair to sustain these levels. A drop below ¥106.50 would revive the bearish view, while continued gains target ¥107.50 and then on to ¥108.30.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Start trading forex today
Trade the largest and most volatile financial market in the world.
- Spreads start at just 0.6 points on EUR/USD
- Analyse market movements with our essential selection of charts
- Speculate from a range of platforms, including on mobile
Live prices on most popular markets
- Forex
- Shares
- Indices
