EUR/USD and GBP/USD on the up but USD/JPY still struggling
After strong gains at the end of last week, EUR/USD and GBP/USD are slightly lower, while the losses in USD/JPY continue.
EUR/USD consolidates after surge
Last week saw EUR/USD hold support around $1.10 in impressive fashion, helping to repair the bullish view, which had come under pressure in the past few weeks.
This break higher how targets $1.12, with intraday dips likely to be buying opportunities – a bullish crossover in daily stochastics reinforces the bullish view and may be backed up this week with a bullish moving average convergence/divergence (MACD) crossover. The bounce over the past week likely banishes any bearish view for the time being – such a development would require a move back below $1.10.
GBP/USD drops back after last week’s bounce
The dramatic rally at the end of last week for GBP/USD has seen some small losses this morning, but if this resolves into a higher low intraday, then buyers may return to maintain forward momentum.
Further gains head towards $1.3285, the late-December high, while above this $1.347 comes into view. A reversal below $1.30 is needed to put more life into a bearish view.
USD/JPY still in downward move
USD/JPY took heavy losses on Friday, and so far there is no sign of a rebound in the works. Further losses head towards ¥107.80 and the lows of early January.
A rebound above ¥109.00 is needed to clear the previous intraday lower high – so far daily stochastics and MACD remain negative while moving averages on the hourly chart continue to point lower, things that suggest a more bearish view remains more appropriate at this time.
This information has been prepared by IG, a trading name of IG Markets Limited. 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