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FX levels to watch – EUR/USD, USD/JPY

EUR/USD has begun showing signs of weakness, while USD/JPY looks set for further upside.

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.
EUR/USD
Source: Bloomberg

EUR/USD recovery takes a hit

EUR/USD has been weakening overnight with the pair falling below the crucial $1.1829 level, following a break below trendline support.

This points towards a heightened chance of further downside for the pair, with the price seemingly respecting the previous resistance level of $1.1862. A break above $1.1880 would negate this short-term bearish view.  

USD/JPY looks to continue recent gains

USD/JPY pulled back into the 76.4% retracement overnight, with the pair subsequently turning higher once more.

The ability to remain above ¥113.20 will be key to maintaining the recent ascent, and until that happens, a bullish view is in place. The ability to break through ¥113.75 will provide a bullish wider view, yet for now, short-term gains seem likely. 

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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.