CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please ensure you fully understand the risks involved. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please ensure you fully understand the risks involved.

EUR/USD and GBP/USD drop as USD/JPY breaks higher

Dollar strength has seen USD/JPY stage a breakout, while putting further pressure on EUR/USD and GBP/USD.

EUR/USD pushing lower again

The EUR/USD pair has been losing ground steadily over the past few sessions. Since 18 August we have seen it create several lower highs and lower lows on the hourly chart, with yesterday’s failure to break $1.185 another bearish short-term development.

A renewed decline today below $1.178 would bring $1.175 into view, and then down to $1.172. A rally through $1.185 is needed to break the current sequence of lower highs.

GBP/USD falters in early trading

Rebounds for GBP/USD, which have been quite dramatic, have also been short lived.

Yesterday’s weak bounce could not hold $1.314 and the rally off the overnight lows has run its course at $1.311. Below $1.305 the price encounters the support zone at $1.3015, which has held back further downside so far this month.

USD/JPY breaks out of triangle

The price of USD/JPY has climbed steadily higher over the last few sessions, and has shrugged off some overnight weakness to clear trendline resistance from the 19/20 August high.

This breakout may provide fresh bullish momentum, targeting ¥106.10, and opening the way to a recovery of some of the ground lost in mid-August. Rising trendline support from the 19 August low comes into play around ¥105.90.

This information has been prepared by IG, a trading name of IG Australia Pty Ltd. 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.

Start trading forex today

Trade the largest and most volatile financial market in the world.

  • Spreads start at just 0.6 points on EUR/USD
  • Analyse market movements with our essential selection of charts
  • Speculate from a range of platforms, including on mobile

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

See more forex live prices


See more shares live prices


See more indices live prices

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.