EUR/USD and GBP/USD tiptoe higher while USD/JPY bounce continues
The dollar continues to make headway against the yen, but gains for GBP/USD and EUR/USD are more muted.
EUR/USD creeps above $1.10
The pullback has continued here with EUR/USD, taking the price back from its 2023 high back towards the 50-day simple moving average (SMA).
Thursday’s European Central Bank (ECB) decision knocked the euro back after signs of a recovery, and while the price recovered on Friday from a one-month low a definitive move higher has yet to begin.
The 50-day SMA could come into play as possible support in the event of deeper losses, while below $1.084 the index could see additional declines towards the May low at $1.066.
GBP/USD edges higher
Like EUR/USD, GBP/USD suffered sharp losses on Thursday, though it also recovered on Friday.
A close back above $1.29 might help to revive a bullish view by creating a higher low. This might then allow the price to target $1.30 and then $1.314.
A reversal back below $1.28 opens the way to the 50-day SMA, and then on down towards the June low around $1.26.
USD/JPY makes more gains
Friday’s Bank of Japan (BoJ) decision blindsided markets, with the yen first rallying and then sinking against the dollar.
USD/JPY ended up on the day with the dollar above ¥140.00 and the pair also closing above the 50-day SMA. Further gains now target ¥142.00, while above this the highs of June around ¥144.90 come into view.
Buyers staunchly defended the ¥138.00 level, so a close below this is needed to begin the building of a bearish view.
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