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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

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

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

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.

This information has been prepared by IG, a trading name of IG Australia Pty Ltd. 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.

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