GBP/USD stalls while USD/JPY hits new eight-month high and AUD/USD falls following weak CPI reading
The pound is little-changed against the dollar, while the dollar continues to make headway against the yen and the Aussie.
GBP/USD stumbles after Tuesday gains
A broad recovery in risk allowed GBP/USD to recoup some of its recent losses, potentially putting it back on an upward path.
A move back below $1.27 is needed to restore a short-term bearish view and renew the potential for a test of trendline support from the late May lows.
Should Tuesday’s trading mark a recovery of a more substantial kind then the highs of mid-June above $1.28 come back into view.
USD/JPY at fresh eight-month high
USD/JPY has continued to make headway, despite suggestions that intervention by the Japanese Ministry of Finance might be in the offing.
Recent gains have seen it push above ¥144.00, the highest level since November. Above this the price will target ¥144.90. Overall the buyers remain in charge unless we see a drop back below ¥142.00.
This might then suggest some short-term weakness which might result in a move to ¥140.00, or towards the rising 50-day simple moving average (SMA).
AUD/USD falls after CPI growth slows
AUD/USD price has fallen further after the precipitate drop of the past week.
A close back below $0.665 leaves the sellers firmly in charge and could open the way to new losses in the direction of $0.66 or lower.
Buyers would need a reversal back above the 200-day SMA to suggest the pullback has at least paused.
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