Established in 1974
185,800 clients worldwide
Over 15,000 markets

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

USD strength following Friday’s non-farm payrolls means that USD/JPY is finally moving higher, while weakness in sterling means more downside ahead for GBP/USD.

Euro and US dollar notes
Source: Bloomberg

GBP/USD still lacking strength
Weakness in sterling goes on, although for now the $1.30 level is holding. A break below here would head towards the July post-Brexit lows, around $1.2790.

Any bounce needs to clear $1.35, which stifled a rally back in July. Any strength in IN_GBPUSD is likely to be treated as a fresh selling opportunity.

GBP/USD chart

EUR/USD heading lower
Having reversed sharply at $1.1223 last week, it looks like further weakness is in store here, with the first stop being around $1.10 and then $1.09.

The uptrend from December finally appears to be running out of steam, although it will take more to really change the prevailing direction. Any move above $1.1223 would target the June high at $1.14.

EUR/USD chart

USD/JPY looking to bounce
The most recent leg down in this longer-term downtrend seems to have run its course, with a close above ¥102.50 likely to confirm that a bounce is in progress.

Nonetheless, even though the pair did not make a fresh low it still looks like the downtrend is still in effect, so any bounce back towards ¥104.50 may well bring out fresh sellers. Support for now lies around ¥100. 

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