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EUR/USD and GBP/USD falter while USD/JPY rallies

Some of the dollar’s recent weakness has been reversed, as markets trim rate cut expectations, with the result that EUR/USD and GBP/USD have dropped while USD/JPY has rallied.

EUR/USD edges down after recent gains

The price of EUR/USD has dropped back to the 200-day simple moving average (SMA) and has also remained above the $1.1345 peak from early June.

Further declines would target $1.13. If the price can hold $1.134 then a rebound may develop, heading above $1.142 to create a new higher high.

GBP/USD falters at key resistance

The daily chart would suggest that a bearish picture is developing for GBP/USD, as the price fails to move above $1.277.

Further declines head towards $1.259 and $1.25. The price dropped to $1.265 on 21 June before rebounding, so some buying pressure may be seen around this level. If this holds, a move back to $1.277 may develop, but a daily close above this level is needed to suggest that a breakout is in play.

USD/JPY rallies from recent lows

Having rebounded from the low below ¥107.00 yesterday, USD/JPY may be about to stage a short-term rebound that heads towards ¥108.00 and post-April trendline resistance.

The bearish view on the daily chart remains unless the price breaks above ¥108.50, the mid-June high.

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