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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

​​​​Dollar strength propels EUR/USD and GBP/USD lower, while USD/JPY rockets through key level​​​​

JPY/USD Source: Bloomberg

​​​EUR/USD drops for a second day

​After rallying early on Tuesday the ​​​EUR/USD price reversed course, falling back below the declining 50-day simple moving average (SMA).

​If this marks a lower high then a renewed fall below $1.053 would then see the price fall towards its October lows, and reinvigorate the downtrend. Buyers will need a move back above $1.065 to indicate a potential recovery has begun.

EUR/USD chart Source: ProRealTime
EUR/USD chart Source: ProRealTime

​GBP/USD edges lower

​The ​GBP/USD also saw its (more limited) gains ebb away on Tuesday, leaving it hovering just above $1.21. This area provided some support over the past two weeks, but the ongoing failure to break higher seems to point towards a renewed run of losses that could see the pair head towards $1.20.

​A break above $1.22 would see the price push on above short-term trendline resistance from the mid-October high, and also above trendline resistance from the July peak.

GBP/USD chart Source: ProRealTime
GBP/USD chart Source: ProRealTime

​USD/JPY hits new 2023 high

​Yesterday saw the ​USD/JPY surge through the ¥150.00 barrier, closing above it and above ¥151.00,

​This has resulted in a bullish moving average convergence/divergence (MACD) crossover, as momentum revives, but could result in volatility given the challenge to the Japanese finance ministry’s previous comments about supporting the yen around ¥150.00. Nonetheless, a break towards the 2022 highs just below ¥152.00 is now underway.

USD/JPY chart Source: ProRealTime
USD/JPY chart Source: ProRealTime

This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa 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.

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