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.
Established in 1974
Over 185,000 clients worldwide
15,000 markets worldwide

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

After a pullback, cable appears to be on the move higher, while USD/JPY has hit a key inflection point.

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.
US dollar and Japanese yen notes
Source: Bloomberg

GBP/USD buyers appear to be in charge

Having hit $1.24 late on 17 January, the pair dropped back towards $1.2250 before finding fresh buyers. It then broke through the descending hourly trendline that could have constituted resistance. We now look to see if it can move above $1.2356 and then $1.24.

Above here the $1.26 level is the next area to watch. The sharp rally earlier this week would seem to indicate the buyers are now in charge. It will take a daily close below $1.22 to dispel this notion.

EUR/USD uptrend remains

Despite failing to break $1.07 earlier in the week the uptrend here may not be done yet. The dip overnight took the price to $1.0620, before buyers stepped in.

A move higher will need to clear $1.07 and then push towards $1.0733 and $1.0824. A drop below $1.06 would begin to suggest that the bounce has run its course. 

USD/JPY pullback looks to be coming to an end

We may be seeing the end of the USD/JPY pullback, particularly if the price can hold above Y114.50. A close above Y115 would open the way to the Y116.76 level, and then on to Y119.

However, with the price overextended in the hourly time frame some profit-taking may be in evidence. Nonetheless, sellers will need to get the price below Y114, and in short order, to avoid momentum shifting to the upside. 

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.  Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. 

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.