Dollar strength pushes EUR/USD and GBP/USD lower but bolsters USD/JPY back above ¥150.00
After weakening in the wake of the Fed decision, the US dollar has revived, causing the euro and sterling to give back some of their recent gains, and lifting the dollar back above a key level against the yen.
EUR/USD weakens as dollar recovers
The price with EUR/USD has dropped back below $1.07, though the short-term bounce from the October lows is still in place.
We may see some support around the $1.067 level, the high from late October, or at the 50-day simple moving average (SMA), that may preserve the bounce and see fresh buying pressure emerge.
A move back above $1.07 would help to restore the bullish view and see the price resume its progress towards the 200-day SMA.
GBP/USD in retreat
Early trading with GBP/USD on Wednesday saw the price fall back below its 50-day SMA, and back below the early-October highs.
Additional declines now target the $1.22 area, and then down towards previously-broken trendline resistance. This may then act as support for the pair, though a close below this and below $1.21 would clearly leave the sellers in charge.
Bulls will need a close back above the 50-day SMA that can open the way to another attempt to challenge the 200-day SMA.
USD/JPY moves back above key level
USD/JPY is back above ¥150.00 once again, clawing back some of the losses from last week.
Whether this will bring fresh intervention remains to be seen, but for the moment the buyers are in charge once again. Additional gains continue to target the ¥152.00 level.
A close back below ¥149.00 is needed to suggest a short-term pullback is now beginning.
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