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

Sterling continues to fly, given more energy by economic news. Meanwhile, USD/JPY seems to be rolling over once more.

Sterling
Source: Bloomberg

EUR/USD unable to break through $1.20

The bounce from yesterday’s lows is running out of steam, with the price for EUR/USD unable to push above $1.20. The lack of news flow is undoubtedly contributing to the euro’s relative quiet at present.

Targets on the upside remain at $1.2042 and then $1.2067, while it seems unwise to become bearish on the pair unless we see a move back below $1.18.

EUR/USD price chart

GBP/USD with a bullish outlook

Cable continues to hurtle higher, as yesterday’s consumer price index (CPI) reading causes fresh bullish momentum to develop for GBP/USD.

There is now only the $1.3427 area as resistance in the near term, and then on to $1.3675. Support is likely to come at $1.3273, and then $1.3150.

GBP/USD price chart

USD/JPY with potential for more upside

USD/JPY may well have created a new lower high as it turns lower from the ¥110.29 level.We would then look for a resumption of the downtrend.

A move back above ¥110.29 negates this, and should it break ¥110.67, more upside is to be expected.

USD/JPY price 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