EUR/USD and GBP/USD weaken as USD/JPY bounce gathers pace
Dollar strength has lifted USD/JPY, whose rally has entered a third day, but EUR/USD and GBP/USD are retreating.
EUR/USD moves lower
EUR/USD managed to break out of a short-term descending channel at the end of last week, but gains stalled yesterday below $1.19.
If the buyers are to really reassert control then a move above $1.19 and then $1.196 would be required, clearing the way for a bigger move to the upside. Sellers will hope that the price will turn back lower and target last week’s lows near $1.175.
GBP/USD falters at $1.39
With GBP/USD having recovered to an extent, and continuing to hold the $1.375 area, the price now looks for a move back towards $1.40.
Friday’s bounce was a powerful thrust, and dealt a blow to the bearish view. While there wasn’t much movement yesterday at least it held its ground, providing a base for further gains.
USD/JPY bounce enters a third day
Five days of losses with USD/JPY brought the price back to the 50-day simple moving average (SMA) currently ¥109.85, where a defence was mounted and a new bounce appears to have begun.
Further gains target the peak from the beginning of the month, towards ¥111.57. A renewed bearish view requires a move back below last week’s higher low and then below ¥109.55.
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