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 look to further upside, as USD/JPY bounce runs out of steam

Gains continue to dominate in EUR/USD and GBP/USD, but the breakout earlier in the week for USD/JPY appears to be fizzling out.

EUR/USD climbs to new high

EUR/USD has moved decisively higher over the past two sessions, clearing $1.20 and then $1.21 after weeks of indecision.

The path of least resistance clearly lies to the upside, but with the price now so extended to the upside bulls need to be careful. A drop back below $1.20 could spark a bigger pullback towards the 50-day simple moving average (SMA) of $1.1812.

GBP/USD recovers from Wednesday weakness

Dips for the GBP/USD pair do not last very long, as we saw yesterday with the drop below $1.33 which was swiftly recovered.

The November upward trend stays in place until we see a move back below $1.33, but as has been shown over the past week or more there is plenty of buying pressure as we approach this level. Bears will need plenty of strength to effect a real change in the current outlook for this pair.

USD/JPY continues breakout

USD/JPY’s rally through trendline resistance from earlier in the week continues, although there is little real conviction behind it.

Yesterday’s bounce towards ¥104.80 was hit by selling just as the last one was on 24 November, putting further upside into question. A reversal below ¥104.00 would break trendline support from the November low and also put the price back below trendline resistance from the November peak at ¥105.50.

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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.

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