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EUR/USD and GBP/USD recover as USD/JPY falters

Some pre-election weakness has hit the dollar, allowing the euro and sterling to recover some lost ground, while USD/JPY’s bounce from last week’s lows may have run its course.

EUR/USD rallies off support

After holding below the 100-day simple moving average (SMA) yesterday the EUR/USD pair is moving up again this morning, with a renewed push higher targeting $1.188, the high from the latter part of October.

It has managed to rally from around $1.162, the same area that held in late September, bolstering the bullish view for the time being. A reversal below $1.16 would negate this view.

GBP/USD reverses course

GBP/USD also moved below its 100-day SMA ($1.2883) yesterday, but buyers arrived to prevent a close below this indicator, and we have seen some further bullish momentum this morning that increases the chance of a renewed move higher in the uptrend from the September lows.

This would bring $1.315 into view. A move below $1.286, support over the past three weeks, is needed to hand the initiative to the sellers.

USD/JPY weakens after three-day gain

Here the price of USD/JPY rallied off the lows of last week, but already what limited bullish momentum there was is slipping away.

A rally towards ¥105.00 yesterday found sellers ready to push the price lower, with some follow-through this morning. With momentum still weak a reversal below ¥104.50 could mark another push lower that takes the price below ¥104.00, a level of support since the end of July.

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