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EUR/USD and GBP/USD look to further upside, as USD/JPY bounce runs out of steam

Gains continue to dominate in EUR/USD and GBP/USD, but the breakout earlier in the week for USD/JPY appears to be fizzling out.

EUR/USD climbs to new high

EUR/USD has moved decisively higher over the past two sessions, clearing $1.20 and then $1.21 after weeks of indecision.

The path of least resistance clearly lies to the upside, but with the price now so extended to the upside bulls need to be careful. A drop back below $1.20 could spark a bigger pullback towards the 50-day simple moving average (SMA) of $1.1812.

GBP/USD recovers from Wednesday weakness

Dips for the GBP/USD pair do not last very long, as we saw yesterday with the drop below $1.33 which was swiftly recovered.

The November upward trend stays in place until we see a move back below $1.33, but as has been shown over the past week or more there is plenty of buying pressure as we approach this level. Bears will need plenty of strength to effect a real change in the current outlook for this pair.

USD/JPY continues breakout

USD/JPY’s rally through trendline resistance from earlier in the week continues, although there is little real conviction behind it.

Yesterday’s bounce towards ¥104.80 was hit by selling just as the last one was on 24 November, putting further upside into question. A reversal below ¥104.00 would break trendline support from the November low and also put the price back below trendline resistance from the November peak at ¥105.50.

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