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USD/JPY is trading at 4-year highs while EUR/USD and GBP/USD begin the new year on the back foot

While EUR/USD and GBP/USD are struggling, USD/JPY has begun the new year with a push to four-year highs.


EUR/USD is rapidly slipping towards $1.1274, the 29 December low, below which the November-to-December channel support line can be spotted at $1.1256 and may hold.

If not, a good band of support can be found between the 7 and 20 December lows at $1.1237/22. Further down sits the November low at $1.1186.


GBP/USD formed a minor top at $1.355 in late December and is seen heading back down towards the tentative support line at $1.3453. Below it lies the $1.3412/02 support zone, made up of the late September low and the 38.2% Fibonacci retracement of the December advance.

Further down more significant support can be made out between the mid-November low and the late November-to-mid-December highs as well as the 50% retracement at $1.3375/53.


USD/JPY continues its December advance and has now risen above the November peak at ¥115.52 to a 4-year high and thus likely has the August 2015 low at ¥116.21 in its sights.

Above this level sits strong resistance between the October 2015 low and the December 2016 and January 2017 highs at ¥118.06/66. Upside pressure should be maintained while the cross remains above this year’s current low at ¥114.95.

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