EUR/USD and GBP/USD edge down as USD/JPY attempts to move higher

Dollar strength has borne down on EUR/USD and GBP/USD, but enabled USD/JPY to hold close to recent highs.

EUR/USD drifts back to 50-day MA

While EUR/USD continues to hold above the 50-day simple moving average (SMA) at $1.2112, the expected bounce from this indicator has not materialised.

Although a reversal below this will be viewed as a bearish development and bring the mid-month low into play at $1.2054, the next target will be $1.195, where the price stalled on the way up in August, and then on to the 100-day SMA at $1.1942. A more bullish view requires the recovery of $1.22.

GBP/USD retreats for a third day

GBP/USD continues to edge back from the highs seen last week, with a very choppy move higher over the past six weeks dominating in place of the smoother gains earlier in 2020.

However the upward move is still in place, and as a result this weakness is likely to be temporary, although a push back to the 50-day SMA at $1.3477 cannot be ruled out.

USD/JPY stuck below 50-day SMA

A move above the 50-day SMA (currently ¥103.82) continues to elude USD/JPY, but equally a resumption of the downtrend of recent months has not yet developed despite the reversal below the 50-day SMA earlier in the month.

A revival targets ¥104.00 and then ¥104.40, while further declines would spark a revival of the downtrend and target ¥102.60.

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