Dollar strength helps drive USD/JPY higher, while EUR/USD and GBP/USD show signs of weakness
EUR/USD and GBP/USD start to ease back from resistance, while USD/JPY starts to regain lost ground.
EUR/USD eases back from Fibonacci resistance
EUR/USD has respected the 76.4% Fibonacci resistance level this week, with the pair easing back since Monday’s rally into that $1.2116 high.
However, we are stuck within two key thresholds, with a rise through $1.2116 bringing a bullish continuation signal, while a decline below $1.199 would point towards a bearish reversal.
GBP/USD decline continues recent range
GBP/USD has been stuck within the $1.4006-$1.367 range for the past two months, with the pair struggling to gain traction in either direction. That consolidation phase looks to be playing out once again with price turning lower from the $1.4006 peak last week.
With that in mind, there is a good chance we see another move lower from here to extend this range move. Ultimately, it makes sense to expect further rotation between these two extremes until price breaks through one to signal the beginning of a new phase.
USD/JPY breaks resistance to bring wider retracement
USD/JPY has finally broken from its short-term downtrend, with the rise through ¥108.14 bringing a fresh period of upside. That has taken us towards the 200 simple moving average (SMA) resistance. Given the recent break below ¥108.33 support, this current rebound looks likely to be a retracement phase before we turn lower once again.
Whether we end the rally here remains to be seen, but it may make sense waiting for a break below the ¥80.00 threshold on the stochastic as a means to highlight reversing momentum. Until then, there is a good chance we see further upside as the pair continues to build a deeper retracement.
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. See full non-independent research disclaimer and quarterly summary.
Start trading forex today
Find opportunity on the world’s most-traded – and most-volatile – financial market.
- Trade spreads from just 0.6 points on EUR/USD
- Analyse with clear, fast charts
- Speculate wherever you are with our intuitive mobile apps
See an FX opportunity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See an FX opportunity?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from just 0.6 points on popular pairs
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See an FX opportunity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
