EUR/USD and GBP/USD hold firm while USD/JPY edges higher
With little to drive them, FX markets are relatively quiet, although USD/JPY has managed to push higher after stabilizing in recent sessions.
EUR/USD steady after recovery
EUR/USD has been able to recover over the past four sessions, moving back above parity again.
However, it is beginning to encounter increased bearish pressure after the drop last Tuesday. A reversal back below $0.9954 would put the sellers back in charge, and open the way to the lows of early September towards $0.986.
Continued gains target the 50-day simple moving average (SMA) (currently $1.009), while a rally back above the current September high near $1.02 might suggest that the relentless downward move has been arrested for now.
GBP/USD edges up
GBP/USD continues to defend the $1.14 level, as it did last week and earlier in September.
However, upside appears to be limited for the time being, especially with the Federal Reserve (Fed) meeting looming large over Forex (FX) markets this week. Nonetheless, the continued defence of $1.14 does suggest that a rebound might be on the cards, although it would take a move back above $1.16 to provide firmer bullish impetus.
Further declines below the low of last week at $1.135 open the way to the 1985 lows at $1.07.
USD/JPY looks to renew its move higher
After stumbling last week USD/JPY has stabilised, and is once more making headway.
This week’s Federal Open Market Commity (FOMC) decision may well be a key point for the pair, but it will take a move below ¥141.60 to signal that some near-term weakness has developed.
Further upside would target last week’s highs at ¥145, and from there a fresh two-decade high would result.
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