CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please ensure you fully understand the risks involved. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please ensure you fully understand the risks involved.

EUR/USD and GBP/USD pause within bearish breakdown, while USD/JPY starts to reverse lower

EUR/USD and GBP/USD pause after recent slump, while USD/JPY starts to reverse latest gains.

EUR/USD pauses after recent slump

EUR/USD has been hit hard over the course of the week, with the pair trading at the lowest level in 14 months.

We have seen little by way of bullish momentum thus far. Therefore, it makes sense to expect further downside to come. A rise up through the $1.1609 would be required to bring a more neutral short-term picture into play.

GBP/USD expected to fall further after recent declines

GBP/USD has similarly suffered sharp losses over the course of the week, with the pair hitting a nine-month low on Wednesday.

While the volatility has eased somewhat since then, the gains seen yesterday seem to have simply formed a 76.4% Fibonacci retracement. As such, further downside looks likely unless we see a break up through the $1.3555 resistance. A beak below $1.3411 brings greater confidence of another breakdown.

USD/JPY falls below support after period of sharp gains

USD/JPY has reversed lower towards the end of the week, with the pair moving into retracement mode following a period of sharp gains in the wake of last week’s Federal Open Market Committee (FOMC) meeting.

There is a risk of a deeper pullback given the decline through ¥111.20 support, yet any such downside would be viewed as a buying opportunity unless price falls through the ¥109.12 low.


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

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. All share prices are delayed by at least 20 minutes. Prices are indicative only.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.