Cable continues to push higher, while USD/JPY seems to be heading lower once more.

One pound sterling and dollar note
Source: Bloomberg

GBP/USD follows the same pattern
The pair looks to be repeating the pattern of recent days, which have seen cable advance, pull-back and then advance again. If yesterday’s lows of around $1.4136 hold, then we could see further upside progress towards the 50-day simple moving average (SMA) at $1.4350.

A close above here would enable the pair to contemplate a continuation of the rally, this time to the February highs around $1.4670. Dips should continue to be bought here, with only a move below $1.4050 invalidating this outlook.

GBP/USD chart

EUR/USD heads towards further gains
A recovery late yesterday for this pair seems to suggest the bulls are in charge for the time being. Bulls need to push on beyond $1.1050, but so long as it holds above the $1.0950 area we can expect further gains for the pair. A failure to push on through $1.1050 (also around the 200-day SMA) would signal a return towards the lows of January around $1.08. 

EUR/USD chart

USD/JPY pushes lower
Overnight USD/JPY took out the low of Friday’s session and has pushed on lower. The risk now is that we see a move back to ¥112 and potentially as far as ¥111, the lows of February.

A turn higher back above ¥113 would head towards ¥114, where it may encounter falling trendline resistance from the 2 March highs. 

USD/JPY chart

USD/CAD heads for further selling
The 200-day SMA (C$1.3288) is providing some support for the pair, but with the 50-hour SMA unbroken thus far we may be seeing another rally to be sold, rather than a longer-term move higher.

It would require a push above C$1.34 to indicate that the buyers are in charge once more. 

USD/CAD chart

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