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

Sterling weakness remains the lead story, while USD/JPY is picking itself up off the floor after a drubbing yesterday. 

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.
Pound and US dollar notes
Source: Bloomberg

GBP/USD avoiding October clears – for now

Even after a third straight session of losses for sterling, the pair is yet to move firmly below the October lows.

If it does then $1.1943 is the first area to watch, and then down to the low seen at the October crash, to $1.18. A rally needs to clear the $1.22 area to open the way to the $1.24 zone.

EUR/USD targets late-December highs

Weakness yesterday was swiftly reversed, with the pair shooting back to $1.06, but unable to push on through the highs seen at the end of last week.

If it does, then $1.0656 and $1.0780 come into play, which would take EUR/USD back to the highs seen at the end of December. Support levels are to be found at $1.05, and then $1.0374.

USD/JPY does a 180

Yesterday saw a remarkable reversal, marking a 180 degree turn from Friday’s gains.

However, the slump for USD/JPY ran into support at ¥115.24, around last week’s lows, so this is the level bears need to break to open the way to the 50-day simple moving average at ¥113.11.

If ¥115.24 holds, then ¥116.88 and ¥118.69 come into view. 

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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.