Skip to content

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

Dollar weakness weighs on USD/JPY but lifts EUR/USD and GBP/USD

Last week’s US data prompted a fall in the greenback, but caution prevails this morning ahead of Powell’s speech today.

Video poster image

​​​EUR/USD looks to renew uptrend

​Friday’s US data provided the EUR/USD with the dollar weakness it needed to push back towards $1.07 and then look for further gains. After the consolidation of December and early January, which found buyers in a dip towards the 50-day simple moving average (SMA), the price has now moved back above $1.07, and a move towards $1.08 appears to be developing.

​A daily close above $1.085 would point the way towards a fresh bullish view. Sellers have once again been shut out of price action, and a move back below the 50-day SMA would be needed to suggest some short-term weakness.

EUR/USD chart Source: ProRealTime
EUR/USD chart Source: ProRealTime

​GBP/USD back above 200-day MA

​The past two GBP/USD sessions have seen the price move back above the 200-day SMA, and now a move back towards the December high at $1.24 seems likely. The daily moving average convergence/divergence (MACD) appears to be on the cusp of another bullish crossover, having declined during the second half of December. Above $1.24 the May high at $1.2655 comes into view.

Last week saw the price hold around the $1.198 level, and above the 50-day SMA, so a move back below this would provide an indication of some potential short-term weakness.

GBP/USD chart Source: ProRealTime
GBP/USD chart Source: ProRealTime

USD/JPY edges up

​After falling back on Friday USD/JPY attempted to recover on Monday, but gains faltered. For the moment the bearish view is back in place, but a move above ¥134.00 could signal that a short-term recovery is in progress. But with a ‘death cross’ of the 50-day SMA below the 200-day SMA likely in coming sessions the picture is likely to turn more bearish.

​Additional downside would target ¥130.00, where buyers stepped in last week, while below this the May 2022 low at ¥126.70 is the next target.

USD/JPY chart Source: ProRealTime
USD/JPY chart Source: ProRealTime

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.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.


For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.