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 edges down as USD/JPY holds firm after yesterday’s drop

Monday’s volatility was short-lived, with both EUR/USD and USD/JPY stabilising in early trading.

EUR/USD edges down after Monday’s volatility

The EUR/USD rally suffered its most severe knock in weeks yesterday, falling sharply but then rebounding in thin pre-Christmas trade.

The price remains within the November uptrend, yesterday’s low having approached, but not tested, rising support. A move below $1.21 would break this support, and potentially bring the 50-day simple moving average (SMA) at $1.1921 into view.

USD/JPY stabilises after yesterday’s drop

Just as EUR/USD went up from the lows, USD/JPY fell back yesterday after attempting to rally during the early part of the session.

Last week saw it create a new lower low, moving below ¥103 for the first time since March. The long-term downtrend continues to hold sway, and rallies towards the 50-day SMA have proven to be useful indications of impending lower highs. With the price now stretched away from the 50-day SMA, the chance of a snap-back rally cannot be discounted.


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