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EUR/USD and GBP/USD look to move higher, as USD/JPY rebounds from Monday’s low

The euro and sterling have both edged up against the dollar, while the buyers have come in to support USD/JPY after yesterday’s sudden and brief dip.

EUR/USD hovers below recent highs

EUR/USD has moved back to the $1.216 zone that marked the high since the end of November.

Once again a small dip has been bought, putting the pair back on an upward course that looks set to challenge $1.2214 and then $1.2413, a level last seen in the first half of 2018. For sellers, a close below $1.206 from last Wednesday could open the path to more downside.

GBP/USD knocked back from recent highs

The GBP/USD pair has bounced back from last Friday’s lows below $1.32, but while it continues to move higher, Monday’s surge above $1.34 brought out the sellers, creating the third long wick to the upside since early December.

This suggests a gloomier near-term outlook, with bulls unable to hold the highs. A close above $1.34 would start to revive a more bullish view, targeting $1.347 in the near-term. Alternatively, sellers need to drive the price below $1.32, and then below the 50-day simple moving average (SMA), to reverse the higher low created on Friday.

USD/JPY rallies from Monday low

USD/JPY has held firm above ¥103.60 since mid-November, and Monday’s dip below this level to ¥103.50 merely confirmed the strength of support, with a quick bounce from this level developing.

However, while buyers can be pleased with this effort, they now need to clear ¥104.60, the upside resistance that has also held since the second half of November. For the time being, the range trade continues.

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