EUR/USD and GBP/USD stall as USD/JPY continues to head lower

Rallies in EUR/USD and GBP/USD have run out of steam, but the rapid downward move in USD/JPY shows no sign of stopping.

EUR/USD looks to reverse Wednesday weakness

EUR/USD edged back from $1.19 over the past two days, with a downward move in yesterday’s session.

A reversal back above $1.19 would be the starting point of a more bullish move that could see the $1.20 level tested. Alternatively, we look for a modest retracement towards $1.175, with a more bearish view taking us back towards $1.16 and the lower bound of the range that has prevailed for the past four months.

GBP/USD stalls below $1.33 again

GBP/USD’s push higher ran out of steam at $1.33 yesterday, as it did last week, providing an indication of further selling pressure from here.

A deeper move below $1.315 would raise the risk of a near-term double top, with a drop below $1.31 providing confirmation of this. A rally through $1.33 provides a new bullish catalyst and opens the path to $1.347 and the September high.

USD/JPY downtrend firmly back in play

Monday’s brief bounce is a distant memory, as USD/JPY heads back towards the month low at ¥103.20.

The longer term downtrend has reasserted itself this week with the reversal below the 50-day simple moving average (SMA) of ¥105.03 that created another lower high.

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

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.