EUR/USD and GBP/USD make new lower lows, while USD/JPY continues to climb
The dollar buying continues apace in FX markets, pushing the euro to a two-decade low and the pound to a two-year low against the US currency. Meanwhile, USD/JPY continues to target recent highs.
EUR/USD hits fresh lows
The past two weeks have seen the downtrend reassert itself here with EUR/USD, and now the price has fallen to its lowest level in two decades.
The pair continues to eat into gains made in the post-February 2002 rally, but the next major levels to watch will be down at $0.8563.
The lower high of mid-August confirmed the downtrend, so it would take a rebound back above $1.031 to reverse the near-term bearish view.
GBP/USD slips below $1.18
The renewed bout of risk-off sentiment in markets was already in play here with GBP/USD, as the price had fallen back from its August lower high at $1.22.
Price action has resulted in a fresh lower low for the pair, which has now dropped to a fresh post-March 2020 low. Further declines target that 2020 low at $1.14.
As with EUR/USD, the sellers seem firmly in charge, with little to indicate even a short-term rebound may develop.
USD/JPY continues to aim for new highs
The fresh gains continue here, and USD/JPY now targets the highs of July at ¥139.40.
The pair recovered from the low of August, and having pushed back above the 50-day simple moving average (SMA) has recovered a new lease of life in its current uptrend.
A reversal below ¥133.00 would put it back below the 50-day SMA and might signal a fresh attempt to push below the August low.
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