EUR/USD edges down as USD/JPY holds firm after yesterday’s drop

Monday’s volatility was short-lived, with both EUR/USD and USD/JPY stabilising in early trading.

EUR/USD edges down after Monday’s volatility

The EUR/USD rally suffered its most severe knock in weeks yesterday, falling sharply but then rebounding in thin pre-Christmas trade.

The price remains within the November uptrend, yesterday’s low having approached, but not tested, rising support. A move below $1.21 would break this support, and potentially bring the 50-day simple moving average (SMA) at $1.1921 into view.

USD/JPY stabilises after yesterday’s drop

Just as EUR/USD went up from the lows, USD/JPY fell back yesterday after attempting to rally during the early part of the session.

Last week saw it create a new lower low, moving below ¥103 for the first time since March. The long-term downtrend continues to hold sway, and rallies towards the 50-day SMA have proven to be useful indications of impending lower highs. With the price now stretched away from the 50-day SMA, the chance of a snap-back rally cannot be discounted.

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.