FX levels to watch – EUR/USD, GBP/USD, USD/JPY

The week begins with the dollar firmly on top in risk currencies, keeping the euro and sterling on the back foot. However, against the yen it continues to decline. 

EUR/USD maintains downtrend

The selling around $1.24 continues last week for EUR/USD, for the second week in a row.

We have seen the downtrend maintain itself, and while the price is oversold on a four-hour chart any rebound that fails to breach $1.24 remains a likely selling opportunity. The price broke $1.2275 this morning, a key support from 9 March, and if this remains broken then $1.2165 comes into play.

GBP/USD continues March rally

The March rally continued last week, with GBP/USD testing the $1.40 area.

It was unable to hold above this, but buyers have come in to defend the $1.39 level. A push above $1.40 targets $1.4070 and then $1.4145, while a failure to move above $1.40 would raise the possibility of a move back to $1.3836 and lower.

USD/JPY holds above lows of the month

The downtrend in USD/JPY reasserted itself last week with a sharp drop from the ¥107.30 level.

For the moment, however, the pair continues to hold above the March lows. Possible areas of support come in at ¥105.60, ¥105.45 and then ¥105.24. A rally above ¥107.30 would perhaps signal a change of trend is at hand, and would bring ¥108.30 into view. 

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