EUR/USD, GBP/USD and USD/JPY all move higher
Early trading has seen EUR/USD and GBP/USD build on Monday’s bounce, while USD/JPY continues to push higher.
EUR/USD moves back above $1.06
Monday’s session saw a recovery in EUR/USD, raising hopes of an end to the pullback from the January highs.
Further evidence of a recovery would be needed, with a move above $1.065 and a bullish moving average convergence/divergence (MACD) crossover signalling a more conclusive higher low that might result in a fresh move higher. This would then bring the $1.10 highs from the end of January into view.
A reversal back below Friday’s lows and then below the early January low just above $1.048 would clearly signal that the sellers retain the upper hand for now.
GBP/USD bounces off 200-day MA
GBP/USD saw a revival on Monday as well, bouncing off the 200-day simple moving average (SMA) yet again.
This could signal another attempt to clear the 50-day SMA, which has acted as resistance this month. A rally above here is needed to open the way to another test of the $1.243 peaks from December and January.
For the moment, a more bearish view has been kept in check by the 200-day SMA acting as support. A move below this and sub-$1.191 (the late December lows) would then suggest the sellers are in control once again.
USD/JPY heads towards 200-day MA
USD/JPY's ascent continues, with the 200-day SMA now in sight for the first time since early December.
There still might be a way for sellers to reassert control and create a lower high, but it is looking increasingly likely that bullish momentum will carry the price back higher and above the 200-day SMA. This then points towards a test of ¥138.00 and higher.
Sellers will want to see a reversal below ¥135.00 and a bearish MACD crossover that could yet revive the bearish outlook here and signal a resumption of the quarter four (Q4) 2022 downtrend.
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