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EUR/USD and GBP/USD head lower as USD/JPY surge continues

Dollar strength continues to push USD/JPY higher, while keeping the pressure on EUR/USD and GBP/USD.

EUR/USD hits two-month low

The retreat continues for the EUR/USD, which sank to a two-month low on Wednesday.

Lower daily highs point towards continued selling pressure, which brings $1.194 and then $1.188 into view as near-term possible support. Alternately we wait for a break back above $1.21 as evidence that a higher low has been formed.

GBP/USD losses accelerate

A deeper pullback appears to be underway here, as the price of GBP/USD drops below $1.366 and looks to push towards the 50-day simple moving average (SMA) at $1.3533, and then down to $1.347.

The tight range-bound trade of late January has finally given way to the downside, as the price retreats from a higher high above $1.37. As with EUR/USD, the procession of daily lower highs points to a market where the sellers have regained control for the time being.

USD/JPY climb continues

A real change of trend could be underway here, as the price of USD/JPY pushes on through ¥104.80 to hit its highest level since mid-November.

¥105.50 is the next target, the early November peak, and while the breakout appears to have changed the narrative, it will be up to the buyers to ensure that a higher low can be established in due course to reinforce the new outlook.

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