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EUR/USD and GBP/USD rally but USD/JPY runs into resistance

The euro and sterling are rallying against the US dollar, while the greenback itself is struggling to make headway against the yen.

EUR/USD bounces, but view still bearish

The strong bounce with EUR/USD of the past few days is unlikely to change the overall view here unless it can move back above $1.19 in the coming weeks. Even further gains leave the sellers in charge overall, even with the recovery back above $1.17 support.

Ultimately, the bullish view is not likely to receive much medium-term support on current the price action, with a fresh move to the downside expected in due course.

GBP/USD sees renewed strength

GBP/USD has staged a reasonable bounce over the past two sessions, rallying back above $1.36 and holding this level as support.

Trendline resistance from the late-July high comes into play around $1.376, and if the price falters there, then a turn lower would target $1.36 once more. Further, gains above $1.37 head towards $1.40.

USD/JPY’s attempt to rally defeated

Dollar weakness has come into play with USD/JPY, as yet another attempt to move above ¥110.00 fizzles out

However, the price has yet to give a clear sign that it has rolled over, with a move below ¥109.50 likely to provoke a more definitive bearish view. Buyers need to push the price back above ¥110.20 to point towards a more bullish outlook.

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