USD/JPY and EUR/GBP rise while USD/CAD struggles
The dollar is still making gains against the yen, but it is struggling versus its Canadian counterpart. Meanwhile, EUR/GBP is rising following some unexpected weakness in UK inflation.
USD/JPY pushes above ¥148.00
The price of USD/JPY continues to make headway, though a firm close above ¥148.00 continues to elude it in the short-term.
Trendline support from July continues to underpin the rally, and has thus prevented any downside lasting more than one or two days. In the event of a pullback, the price might find support around ¥145.00 or the 50-day simple moving average (SMA).
Additional upside in the medium-term would target the 2022 peak at ¥151.94.
USD/CAD struggles to build on Tuesday’s bounce
Buyers appear to have mounted a bit to halt the pullback from the highs of early September.
USD/CAD rallied off its Tuesday lows, and moved back above the 50- and 100-day SMAs. Buyers now need a close back above C$1.35 to suggest that a low has been formed. This might then allow for a move back towards C$1.37.
A close back below C$1.34 leaves the sellers firmly in charge, and could see further losses in the direction of the C$1.33 level or lower.
EUR/GBP rallies following UK CPI figures
Recent euro strength has seen the EUR/GBP steadily climb from its August low.
Higher lows have been formed over the past month, providing a short-term bullish view. Bigger resistance may lie around £0.867, where gains stalled in July and August.
A close back below £0.859 and the 50-day SMA might suggest that the sellers have reasserted control, though trendline support from the August low would need to be broken to provide confirmation.
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