EUR/USD, EUR/GBP slide while USD/JPY continues to surge higher
EUR/USD and EUR/GBP continue their descents amid low volatility while USD/JPY’s exponential rally is ongoing with it trading at levels last seen in August 2015.
EUR/USD remains under pressure ahead of busy US data calendar
EUR/USD continues to slide below its two-month downtrend line at $1.1035 towards the mid-March $1.0901 low as investors await US consumer confidence, core PCE price index and employment data and mull the latest developments of the Russia-Ukraine war which last week entered its second month.
A slip through the mid-March $1.0901 low would target the $1.0806 early March low. While the cross remains below the mid-March high at $1.1137, this year’s downtrend remains intact.
EUR/GBP trades on weaker footing
Last week EUR/GBP reached but ran out of steam slightly above the 55-day simple moving average (SMA) and 11 March low at £0.837 as UK March consumer confidence and retail sales data came in weaker than expected which pushed the EUR/GBP exchange rate higher.
Since then, it has resumed its descent towards the £0.8305 to £0.8286 region which offered support in January and February and may do so again in the days to come.
Resistance above last week’s high at £0.837 can be found between the 16 February and 25 February highs at £0.8402 to £0.8408.
USD/JPY continues to surge higher
USD/JPY is fast approaching the June 2007 high at ¥124.13, having risen by over +7% since the beginning of March as the Bank of Japan (BoJ) re-iterates its dovish stance despite inflation hitting 3-year highs while traders price in potentially aggressive rate hikes by the US Federal Reserve (FED).
The area around the June 2007 high at ¥124.13 is expected to cap the currency pair in the short term, since the last three weeks’ steep rate of ascent is most likely not sustainable. Were the ¥124.13 high to be exceeded on a daily chart closing basis, however, the June 2015 peak at ¥125.85 would be within reach.
Minor retracements may find support at the 24 March ¥122.43 high and further down between the 22 March high and 25 March low at ¥121.41 to ¥121.18.
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.
