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 move down as USD/JPY surge continues

Dollar strength continues to lift USD/JPY while bearing down on EUR/USD and GBP/USD.

EUR/USD starts the day on a weak note

Yesterday saw EUR/USD lose ground, as a resurgent US dollar weighed on FX markets. Recent losses have been contained around $1.206, so a drop below this marks a loss of support and opens the way to $1.1939 and then $1.188.

Trendline resistance from the January high has capped gains over the past two weeks, but at present a move back above $1.21 would mark a breakout to the upside.

GBP/USD hits bottom of recent range

GBP/USD gains have been contained around $1.373 over the past two weeks, but losses have been halted around $1.366, with buyers repeatedly stepping in to defend this level.

The stronger US dollar may continue to bear down on the pair, opening the way to the 50-day simple moving average (SMA) at $1.3523, or down to $1.347 as possible support.

USD/JPY resurgence continues

USD/JPY has enjoyed a remarkable week, rallying hard from last weeks’ higher low to hit ¥105.00 and a higher high. This is the most sustained price action above the 50- and 100-day SMAs since the beginning of June.

For now the buyers continue to hold sway, targeting ¥105.49 and then ¥106.11. Sellers have not been able to hold back the rally of late, but a reversal below ¥104.00 would signal that a new move to the downside is underway.

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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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