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

The post-Brexit fallout continues to see heightened volatility. Amid gapped moves lower overnight, further declines for EUR/USD, GBP/USD and USD/JPY are expected.

Pound coin and dollar note
Source: Bloomberg

EUR/USD sell-off abates for now

Friday’s sell-off in EUR/USD was followed up by a substantial recovery to close out the week. However, with price breaking back below the key $1.1035 support level, it is likely that further losses are around the corner. 

As such, this current rally is likely to be on borrowed time, with Fibonacci retracements key areas of resistance to watch out for. The $1.1059 level is of particular interest, as this represents a key historical support and resistance level, alongside the 38.2% retracement. As such, watch out for short-term bearish reversal patterns, with key support levels at $1.0984 and $1.0912.

EUR/USD daily chart

GBP/USD resurgence unlikely to last

The pair has seen some calm this morning following another leg lower at the open. There is likely to be further downside, with Fibonacci retracements coming into play should we see any form of resurgence.

Currently the 23.6% retracement appears to be providing some resistance, yet even if we see further upside, this seems unlikely to last. As such, a bearish view is in play unless we see a break through the $1.4000 area. 

GBP/USD daily chart

USD/JPY expected to fall once more

The yen has found substantial attraction as a safe haven since Friday’s decision and despite a moderate tick higher over the past hour, it seems likely that we will see further downside for the IN_USDJPY pair.

The next key support level is ¥101.48, with ¥100.00 below that. With trendline resistance alongside the near-term ¥102.48 level, we are unlikely to see much further upside for now. 

USD/JPY daily chart

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