CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

EUR/USD and GBP/USD surge as USD/JPY wilts under pressure

Renewed strength in EUR/USD and GBP/USD has given new life to current rallies in these pairs, but USD/JPY continues to edge lower.

EUR/USD pushes on to $1.22

EUR/USD has continued to climb, rallying back to the zone around $1.22 that has held back progress throughout the year so far.

The recovery from below $1.21 bounced from trendline support and provided the fuel for the gains of the past two sessions, with a breakout above $1.22 opening the way to $1.234 and the January peak.

GBP/USD at three-month high

With GBP/USD, $1.4242 and the February high are now in sight again as the bounce finds new energy.

An elevated stochastic crossover points towards the strength of bullish momentum here, as the bounce from $1.40 last week remains in place. The steady recovery from $1.36 since March looks set to continue, with a bearish view requiring a reversal below $1.40 at the least.

USD/JPY heads back to trendline support

Since USD/JPY punching higher almost a week ago, the pair has seen bullish momentum fade away, with a drift back down over the previous three sessions and in early trading today.

A reversal higher above ¥109.50 is needed to revive the bullish view, although trendline support from late April has yet to be tested and could provide the fuel for a bounce.

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.

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