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

In the wake of Janet Yellen’s speech the US dollar has moved rapidly lower, stymying the rally in USD/JPY and sending GBP/USD and EUR/USD flying higher. 

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.
Euro
Source: Bloomberg

GBP/USD

Cable has moved by leaps and bounds of late, which has carried the pair back to the $1.4450 resistance level. Just above this is the high from mid-March, at $1.4516, and if the pair can break through here the next area to watch is the February high around $1.4670.

Given the quickness of the move, a dip is likely, and it may see the pair retrace towards $1.4320, or even in the direction of the rising daily trendline at $1.4280.

EURUSD

EUR/USD is now pushing back to the mid-month high just below $1.1350. Just above this is the February high at $1.1390.

The next areas to watch will be $1.1490, the high from last October, and then on to the August high at $1.1710. It would take a move below $1.12 to invalidate the current bullish outlook.

USD/JPY

Janet Yellen has certainly spoiled the party here, bringing the uptrend of the past two weeks to a sudden end.

A drop through the 200-hour simple moving average (¥112.50) now seems to suggest that the pair is heading towards possible support at ¥111.50 and then ¥111, with the next level to watch being ¥110, the peak from early October 2014. 

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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.