EUR/USD and GBP/USD struggling as USD/JPY holds its ground
The bounce in EUR/USD and GBP/USD seen on Friday has stalled, while USD/JPY attempts to recover from the gyrations of late last week.
EUR/USD struggles after Friday bounce
Sellers continue to bear down on EUR/USD, after a bounce on Friday that only partially recovered Thursday’s losses.
If the buyers can hold the price above $1.212 then a rebound may still develop, but a drop back below this would certainly hand the initiative back to the sellers and open the path to $1.20 and $1.188.
GBP/USD gains capped below $1.42
Two attempts to move back above $1.42 on Thursday and Friday failed, and the GBP/USD price has dropped back again in early trading.
Recent weakness has been contained above $1.41 however, so sellers will need to clear this to begin a deeper pullback. Buyers need to recover $1.42 and then move on to $1.424.
USD/JPY holds Friday lows
After Thursday’s surge and Friday’s slump, the outlook for USD/JPY is quite clouded.
The price is holding above Friday’s low so far, which could lead to the formation of a new base for a fresh push higher. Sellers will need to push the price below ¥109.20 to spark a deeper correction.
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