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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.

​​​​​EUR/USD and GBP/USD keep rallying, while USD/JPY comes under fresh pressure​​​​​

​​Dollar weakness is driving EUR/USD and GBP/USD higher, while USD/JPY has fallen as the yen strengthens on more strong Japanese data.

USD/JPY Source: Bloomberg

​​​EUR/USD surges to two-month high

​The ​​​EUR/USD rallied to its highest level since mid-January on Friday, continuing its recovery from February’s low.

​Since then the price has broken through trendline resistance, and moved back above the 100-, 200- and now the 50-day simple moving average (SMA). The rally has carried the price back above $1.09, and the next target becomes the $1.10 highs from November.

​A pullback towards $1.086 might see rising trendline support from the February low tested.

EUR/USD chart Source: IT-Finance.com
EUR/USD chart Source: IT-Finance.com

​GBP/USD continues to rally

​The ​GBP/USD has also enjoyed a good bounce over the past week, which has finally carried it above the December and January highs around $1.28.

​From here, a move towards $1.30 can be contemplated. Some consolidation now back below $1.28 might not dispel the bullish outlook entirely, and even a further dip towards $1.2680 would still likely test rising trendline support from early February.

GBP/USD chart Source: IT-Finance.com
GBP/USD chart Source: IT-Finance.com

​USD/JPY nears 200-day moving average

​The ​USD/JPY rally from the January low has taken a sharp knock, with the price dropping back to its lowest level since early February.

This was already underway last week but commentary from the Bank of Japan (BoJ) about an earlier than expected exit from negative rates saw the yen strengthen further, and today’s GDP data, which showed that Japan avoided a contraction in quarter 4 (Q4), has given traders further reason to buy the yen.

​​The 200-day SMA becomes the next target to watch for support, while below this comes the ¥145.00 level. A rebound back above ¥148.00 might provide hope that a further recovery is underway.

USD/JPY chart Source: IT-Finance.com
USD/JPY chart Source: IT-Finance.com

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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