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EUR/USD drops back as GBP/USD and USD/JPY rally

USD/JPY has seen a huge move to the upside, challenging the ongoing downtrend once more, while EUR/USD falls back from Monday’s highs and GBP/USD keeps pushing higher.

EUR/USD falters after hitting $1.19

EUR/USD rallied to $1.19 yesterday before dropping back, but the overall recovery remains in place.

Further gains will need to see a move above $1.1917 to signal that a break to the upside is now firmly in play, however, or the current range between $1.16 and $1.19 will prevail and a turn lower becomes a distinct possibility.

GBP/USD pushes to new higher high

The volatile uptrend continues here, as GBP/USD shakes off last week’s swings to push towards $1.32 and a new high in its upward move from late September.

A close above $1.32 leaves the price targeting the August peak towards $1.35. A reversal below $1.31 increases the possibility of a substantial retracement towards rising trendline support.

USD/JPY surges to 50-day SMA

Yesterday saw the price of USD/JPY surge from a lower low near ¥103.00 back to the 50-day simple moving average (SMA) of ¥105.26.

This return towards trendline resistance may mark a bigger shift, given the speed and rapidity of the move, but a rally through ¥106.00 would still be needed to break the sequence of lower highs seen in recent months.

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