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EUR/USD and GBP/USD fall sharply, as USD/JPY edges up

The outbreak of risk aversion in markets has hit EUR/USD and GBP/USD hard.

EUR/USD targets August low

EUR/USD has almost completed its return to the August low, giving back almost all the ground gained since then.

The sellers have put the bearish view back on the front foot and how we look for a renewed decline below the August low around $1.167 that will create a lower low and revive the downtrend.

GBP/USD firmly in retreat

The bounce in the pound against the dollar seems to have run its course, and with Friday having seen the GBP/USD price drop below trendline support the sellers are now firmly in charge.

Further declines head towards $1.366 and then $1.36.

USD/JPY edges towards top of range

With USD/JPY, the dollar is still stuck in a range against the yen, since over the past three months dips below ¥109.50 have found buyers while rallies above ¥110.50 tend to run out of momentum.

At present the buyers are in the ascendant, but it looks like a low-conviction move for the time being.

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