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 rally, while USD/JPY is at risk of a turn lower

Risk appetite has revived across forex markets, lifting both EUR/USD and GBP/USD.

EUR/USD on the up for now

EUR/USD has recovered from the lows of Friday and Monday, but - having rallied 150 points - may now be at risk of creating a lower high.

If the price fails to push on above $1.135 then bearish pressure may resume. Alternatively, we look for a move through $1.135 to clear the path for another challenge of $1.14, which marks the highs of last week. Above here confirms the ongoing rally in this pair. A drop towards $1.12 may see this support from Friday tested again, and below here lower lows will confirm that a more bearish picture is emerging.

GBP/USD breaks through trendline resistance

Like stocks, GBP/USD has rallied sharply in the past 24 hours and while upward momentum is fading, the sellers seem to have lost control for the time being.

The rally from Monday’s lows took out trendline resistance from last week’s highs and while the price edges lower, any low that holds above this trendline is likely to prove to be another buying opportunity. A rally through $1.27 will open the way to $1.28, the highs from last week, while a more bearish view requires at least a reversal below $1.25 and then a move below $1.245.

USD/JPY struggles at resistance

We have witnessed a tentative bounce in the USD/JPY price, although gains have now stalled below ¥107.50.

Rising trendline support has held since Friday, while a reversal below ¥107.00 would start to dent the bullish view, and bring ¥106.60 into view. Alternatively, a rally through ¥107.50 suggests the buyers remain in charge, and will target ¥108.60 and higher.

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.

Start trading forex today

Find opportunity on the world’s most-traded – and most-volatile – financial market

  • Trade spreads from just 0.6 points on EUR/USD
  • Analyse with clear, fast charts
  • Speculate wherever you are with our intuitive mobile apps

See an FX opportunity?

Try a risk-free trade in your demo account, and see whether you’re onto something.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See an FX opportunity?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Get spreads from just 0.6 points on popular pairs
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See an FX opportunity?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.