FX levels to watch: EUR/USD, GBP/USD and USD/JPY
Both the euro and the pound have managed to rally, but now find themselves at key resistance. After last week’s dive, USD/JPY is still moving higher but remains in a bearish formation.
EUR/USD returns to top end of range
Yesterday’s rally saw EUR/USD head towards the $1.15 level once again, but this is still providing resistance, as it has since early November.
A close above $1.15 would spark significant upside, targeting $1.1554 and then $1.1623. If the current range holds then the first target is the $1.13 zone of support that has held over the past eight weeks.
GBP/USD back to $1.28
While GBP/USD has rallied hard from the low of last week, the bounce has run into selling around the $1.28 level, as it did at the end of December.
If this holds once again then we can expect the $1.2635 and $1.259 zones to be challenged. A close above $1.281 brings $1.285 and $1.289 into view.
USD/JPY edges higher after recent slump
After last week’s sudden drop, USD/JPY has been pushing slowly higher. Trendline support from the lows of 3 January has underpinned this move.
A reversal back below ¥108.00 would mark a resumption of the downward move. On the upside, the next target is ¥109.60, then ¥109.85 and ¥110.00.
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