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

A key day for FX sees USD/JPY under some pressure. With key speeches today from big-name central bankers, the potential for volatility is increasing. 

Euro notes
Source: Bloomberg

EUR/USD – bullish view  remains in play?

The pair’s move higher off the lows of last week remains intact, although it has yet to breach the $1.12 area in a meaningful way.

Above this would be $1.1270 and then $1.13. It would take a move below the $1.1139 and then $1.1109 area to begin to unwind the bullish outlook for EUR/USD

EUR/USD chart

GBP/USD – another test of $1.2616 on the way?

The downtrend continues for GBP/USD, with a bounce from last week’s lows around $1.26 fizzling out around $1.2750. A push back below the weekly pivot at $1.2706 would signal that another test of $1.2616 is on its way.

As before, $1.2814 is the area that needs to be cleared before we can expect more sustained upside in this pair.

GBP/USD chart

USD/JPY momentum indicators where reversals have begun

USD/JPY has run into the 100-day simple moving average (SMA) at ¥111.80, with momentum indicators, such as stochastics, now in the area where reversals have begun (see mid-March and mid-May).

A close back below ¥111.68 could well see a fresh downward move begin, targeting ¥110.11 and lower. A daily close above the 100-day SMA would be a bullish development, and potentially open the way back to ¥114. 

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