GBP/USD, AUD/USD and USD/JPY regain some of their losses as yields retreat
Outlook on GBP/USD, AUD/USD and USD/JPY as the greenback retreats ahead of Friday’s Non-Farm Payrolls.
GBP/USD recovers from near seven-month low
GBP/USD is seen regaining some lost ground from its seven-month low at $1.2038 as the US dollar tops out following disappointing US private sector employment data and retreating yields.
Wednesday’s low was made near the mid-March low at $1.2011 and the minor psychological $1.20 mark and could thus turn out to be significant.
Minor resistance above Wednesday’s high at $1.2177 is seen along the September downtrend channel resistance line at $1.2196. If overcome, last week’s high at $1.2271 will be back in the picture. This level will need to be exceeded for a medium-term bullish reversal to become possible. Slips should find support around last week’s low at $1.2111.
AUD/USD bounces off eleven-month low
AUD/USD is trying to recover from this week’s eleven-month low at $0.6286 as the US dollar retreats with the mid-August low and the early-September low at $0.6358 to $0.6365 currently acting as resistance.
If bettered on a daily chart closing basis, the May low at $0.6459 may be back in focus. For a bullish reversal to gain traction, a rise and daily chart close above the $0.6511 to $0.6522 late-August and September highs would need to be seen.
Support below Thursday’s intraday low at $0.6325 sits at Tuesday’s $0.6286 low. Below it lie the $0.6273 November 2022 low and the $0.6171 October 2022 trough.
USD/JPY slips on BoJ intervention fears
USD/JPY sell-off from its 10-month high at ¥150.16 amid Bank of Japan (BoJ) intervention fears took it to ¥147.29 on Tuesday, a level the cross gravitates towards despite the central bank not confirming that it did indeed intervene.
On the way down the redrawn July-to-October support line can be spotted at ¥147.66 and may offer support.
Resistance above Wednesday’s high at ¥149.31 sits at the late-September ¥149.70 high ahead of Tuesday’s ¥150.16 intraday peak.
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