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FX levels to watch – EUR/USD, GBP/USD, USD/JPY

Dollar weakness is making itself felt this morning, as the euro soars and the yen begins to see further gains. 

US dollar
Source: Bloomberg

EUR/USD bulls are in charge

In the space of three days EUR/USD has gone from $1.0850 to $1.1027, and so far there is no sign of it stopping. From here we look to $1.1141, and then $1.1279.

The breakout from the late April high seems to confirm that the bulls are in charge, so any retracement should be watched for as a buying opportunity. 

EUR/USD chart

GBP/USD pushes higher

Dollar weakness is helping GBP/USD to move higher once again, although the $1.2950/$1.30 area has held back progress over the past two weeks. Above here $1.3058 and then $1.3427 remain the upside targets.

It would seem futile to become particularly bearish on the pair unless it manages a daily close below $1.2775.

GBP/USD chart

USD/JPY - a turnaround in play?

The rally yesterday petered out below ¥114, creating a new lower high for USD/JPY, but for the time being the ¥113.20 level continues to hold. A move below here would strengthen the case for a continued downtrend on the hourly chart. Further losses would target ¥112.50 and then ¥111.68.

A close back above ¥114 would start to suggest a turnaround is in play, while a close above ¥114.50 would invalidate the bearish hypothesis.

USD/JPY chart

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.

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This information has been prepared by IG, a trading name of IG Markets Limited 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. International accounts are offered by IG Markets Limited in the UK (FCA Number 195355), a juristic representative of IG Markets South Africa Limited (FSP No 41393). South African residents are required to obtain the necessary tax clearance certificates in line with their foreign investment allowance and may not use credit or debit cards to fund their international account.