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

EUR/USD and GBP/USD are regaining ground, but will it last? Meanwhile, USD/JPY is attempting to break into a more bullish phase.

USD/JPY figures
Source: Bloomberg

EUR/USD pushing higher from Fibonacci support

EUR/USD has been moving higher from Fibonacci support since bottoming out on Thursday. Given the wider uptrend, there is a good chance we could be looking at the beginning of the next leg higher for this pair.

We will need a break through $1.1300 to fully know whether that is the case, but unless we break below $1.1110, another move higher seems to be a more likely option. 

EU/USD chart

GBP/USD grinds higher within bearish wedge

GBP/USD has been moving higher over recent trade days. The wider downtrend remains relevant here, with this recent resurgence looking like a short-term retracement before we move lower once more.

With that in mind, rallies look like selling opportunities, with a break through $1.2978 required to negate this view.

GBP/USD chart

USD/JPY shows signs of resurgence

USD/JPY saw a strong end to the week just gone, with question marks being raised over the longevity of this recent downtrend. Interestingly, we saw the price break through $110.81 resistance, weakening at the $111.42 mark.

As such, with the price moving higher once more, a break through $111.42 would provide us with a bullish short-term view for the pair. Conversely, a failure to do so, followed by a break below $110.64 would look likely to bring a more bearing tilt to this market.

USD/JPY chart

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