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

Sterling continues to fly, given more energy by economic news. Meanwhile, USD/JPY seems to be rolling over once more.

CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.
Sterling
Source: Bloomberg

EUR/USD unable to break through $1.20

The bounce from yesterday’s lows is running out of steam, with the price for EUR/USD unable to push above $1.20. The lack of news flow is undoubtedly contributing to the euro’s relative quiet at present.

Targets on the upside remain at $1.2042 and then $1.2067, while it seems unwise to become bearish on the pair unless we see a move back below $1.18.

GBP/USD with a bullish outlook

Cable continues to hurtle higher, as yesterday’s consumer price index (CPI) reading causes fresh bullish momentum to develop for GBP/USD.

There is now only the $1.3427 area as resistance in the near term, and then on to $1.3675. Support is likely to come at $1.3273, and then $1.3150.

USD/JPY with potential for more upside

USD/JPY may well have created a new lower high as it turns lower from the ¥110.29 level.We would then look for a resumption of the downtrend.

A move back above ¥110.29 negates this, and should it break ¥110.67, more upside is to be expected.

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CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.