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

Dollar strength has revived, as USD/JPY breaks a three-year downtrend.

Source: Bloomberg

EUR/USD back under pressure

The broader declining trend looks to have reasserted itself over the past two days, as EUR/USD continues to drop back from the high near $1.18 earlier in the week.

Further declines will bring the $1.15 support zone into play again, while a move back above $1.18 would suggest a retest of the June high at $1.1852.

GBP/USD turns lower

GBP/USD has clocked up a new lower high this week, continuing the declining trend seen since mid-May.

Further falls will take the price below $1.3204 and suggest another move towards possible support around $1.3040. A daily close above $1.3364 is needed to break the short-term downtrend from the May highs and establish a new higher high.

USD/JPY surges

The USD/JPY price has broken out from a downtrend line that has been extant since the first half of 2015.

Pullbacks towards ¥110.84 may continue to find buyers, while new upside targets are to be found around ¥113.64 and then ¥114.50.

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