FX levels to watch: EUR/USD, GBP/USD and USD/JPY
The bounce in USD/JPY bodes well for a recovery in risk appetite, but the pound has taken fresh losses against the US dollar.
EUR/USD still in bearish mode
The EUR/USD pair has continued to decline over the past week, with an overnight rally towards $1.117 running into resistance.
Further declines head towards $1.112, the lows from the end of April, while additional declines target $1.10 and then $1.085. A firm rebound requires a move back above $1.117 and $1.118, the previous lower highs.
GBP/USD slumps in early trading
Hopes that the GBP/USD pair was bottoming out yesterday appear to have been dashed, as it drops lower in earlier trading.
A relentless decline over the past two weeks has seen a series of lower highs, but a move above $1.275 would be a good first step in restoring a more bullish view.
USD/JPY continues to rally
A recovery continues here for USD/JPY with higher lows in place, indicating buying pressure.
Pullbacks towards rising trendline support from the 13 May low would provide buying opportunities, while a close back above ¥110.35 would also help reinforce the bullish view. A close below ¥109.60 would suggest the recovery has run its course.
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.
