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

The dollar appears to be under pressure this morning, as EUR/USD and GBP/USD attempt to gain ground, while USD/JPY tumbles sharply.

GBP/USD forex pair
Source: Bloomberg

EUR/USD continues to grind higher
EUR/USD is breaking through the key resistance at $1.1230 this morning, which provides a bullish short-term signal. This is no doubt a countertrend move, yet the retracement higher seems likely to persist for the short-term.

Key resistance levels are found at the 61.8% ($1.1250) and 76.4% ($1.1266) Fibonacci retracements. Shorts are preferred around those levels for a continuation of the downtrend over the past three weeks.

Key near-term support levels are found at $1.1218 and $1.1180.

EUR/USD price chart

GBP/USD turning higher once more
GBP/USD seems to be in the process of turning higher once more this morning, following a sharp pullback in the second half of last week. The medium-term outlook is bullish and thus a return to this view was expected before long.

With the push above the $1.4523 resistance, there is are tentative signs of a bottom here, where a surge higher seems likely unless price breaks back below $1.4485. Even if this is the case, the medium-term bullish view holds unless we see a move below $1.4403.

Key resistance levels are $1.4534, $1.4550 and $1.4564, with support at $1.4506, $1.4485 and $1.4465.

GBP/USD price chart

USD/JPY sells off from trendline resistance
USD/JPY has sold off sharply from the key resistance level we have been watching last week. The break below ¥109.46 in particular is a sign that we could be seeing either a strong retracement lower, or a top in play here. As such, we have a clear bearish view.

However, it is worthwhile being somewhat wary of jumping into such an extended move lower. Thus, rallies are likely to be sold into, with ¥109.70 resistance and Fibonacci pullbacks of particular interest. We would need to see an hourly close back above ¥110.66 to negate this bearish view.

USD/JPY price chart

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