EUR/USD, EUR/GBP weaker, while USD/JPY continues its ascent
EUR/USD slides post German ZEW, EUR/GBP weaker post-UK jobs data, while USD/JPY bid in wake of BoJ inflation outlook.
EUR/USD weighs on minor support from $1.1387 to $1.1383 post German ZEW
EUR/USD is trading back in the middle of its November-to-January channel and probes the late-November and December lows at $1.1387 to $1.1383. A new impetus may be given by US players returning to the markets after Martin Luther King Jr Day and German ZEW economic sentiment data.
While the $1.1387 to $1.1383 support zone underpins on a daily closing basis, the two-month upside bias remains intact with the October to early-November lows at $1.1513 to $1.1539 still potentially being reached in the days and weeks to come. These are likely to stall the currency pair, though. Should this not be the case, the gradual uptrend may take it to the September low at $1.1563.
Minor support below $1.1383 can be found between the 8 and 16 December highs at $1.1360 to $1.1355. Below it lies the 27 November low at $1.1332.
EUR/GBP slips in the wake of UK jobs data
EUR/GBP briefly slid back towards this year’s low to date at £0.8324 following the UK unemployment rate coming in at 4.1%. The cross keeps returning to the 55- and 200-hour simple moving averages (SMA) at £0.8353 to £0.8348, having been rejected by £0.8364 in the Asian session.
This high was made close to the £0.8366 to £0.8373 resistance zone which the currency pair finds difficult to overcome since it has already been tested several times, as support late last year and as resistance earlier this year.
While the next higher early-January high at £0.8418 isn’t exceeded, the longer-term September-to-January downtrend retains the upper hand. A tumble through the current January low at £0.8324 would engage the December 2016, April 2017, December 2019 and February 2020 lows at £0.8313 to £0.8277, representing key long-term support.
Bullish reversal in USD/JPY is gaining traction following BoJ inflation outlook
USD/JPY continues its rise from last week’s ¥113.48 low, carried by the Bank of Japan’s (BoJ) upgraded inflation forecasts which flagged heightening chances the recent commodity-driven price hikes will broaden, while keeping interest rates unchanged.
The November peak at ¥115.52 will need to be exceeded, though, for the early January 4-year high at ¥116.35 to be back in the pipeline. Slips should find support along the 55-day simple moving average (SMA) at ¥114.33 and mid-December high at ¥114.28. Further, minor support can be found at the 29 November and 8 December highs at ¥113.96.
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.
