EUR/USD and GBP/USD rebounds stall, while USD/JPY recovers
For now EUR/USD and GBP/USD have moved higher, while USD/JPY has recouped some of its losses of the past two days.
EUR/USD steady after three-day rebound
EUR/USD moved up from the lows of the week, and headed back towards $1.06. However, some of those gains appear to be slipping away. Additional upside would head towards $1.0637, and then on to the highs of May and June at $1.0727 and $1.0778.
A fresh weakening of the pair would bring the lows at $1.04 back into view, and additional losses from here would bring $1.0354. For now, it appears the dollar will weaken and allow the pair to push higher in the short term.
GBP/USD looks for additional upside
For GBP/USD, the post-Federal Reserve (Fed) dollar weakness, and slightly more hawkish talk from the Bank of England (BoE), appears to have given the pound space to rally against the dollar, bouncing from below $1.20.
Further gains would target $1.24, and then on towards $1.2589 and $1.2635. Having fallen to a lower low, the downtrend is firmly intact, so it would take a bounce above the late-May high that will help suggest that a reversal is in play.
Additional declines target $1.20, and then below this the March 2020 lows down towards $1.15 come into view.
USD/JPY heads higher again
After two days of losses the USD/JPY price has begun to rebound, and now the highs from this month at ¥135.60 are now upside targets.
For the time being, the price looks to be on a bullish move once again, and it would require a move back below ¥132.00 to put the bearish view in play.
Below this the 50-day simple moving average (SMA) at ¥129.55 is the next area of possible support, while below this the low of May at ¥126.78.
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