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.

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