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

Both the euro and sterling are expected to fall against the dollar today, while the yen continues to charge higher despite BoJ attempts to quell its incessant appreciation.

EUR/USD forex pair
Source: Bloomberg

EUR/USD back towards range top
EUR/USD has rallied back towards the top end of its $1.1335-$1.1438 range following on from a strong Friday session. This means we are now looking for bearish reversal signs to continue this recent trend. Shorter intraday timeframes are useful for this type of situation.

Ultimately, it seems a safer bet to expect a move towards the lower end of this range than to predict an upside breakout. As such, a bearish view is held unless we see a closed hourly candle above $1.1450.

EUR/USD chart

GBP/USD selling from Fibonacci resistance
IN_GBPUSD is selling off from the 76.4% Fibonacci level, following on from a period of upside in sterling.

Ultimately, we have a very clearly defined downtrend in play throughout April so far. Thus, a bearish view is held unless we see an hourly close above $1.4172. The next key support level is $1.4041.

GBP/USD chart

USD/JPY back to April low
IN_USDJPY has sold off once more this morning, in a continuation of Friday’s weakness, which came after a pullback to the 50% retracement.

With price currently at the ¥107.67 support level, we will need to see a closed hourly candle below this level to indicate a likely next leg lower for the pair. In which case the ¥107.00 head and shoulders projection is the next key support level. 

USD/JPY chart

The information 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 Bank S.A. 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 and as such is considered to be a marketing communication.

Find articles by analysts