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

Mixed signals see EUR/USD look primed for upside, while the GPB/USD has rallied into the 76.4% retracement. Meanwhile, USD/JPY has been sold into a crucial support level, which will define the outlook going forward.

EUR/USD in recovery mode after fall into key support

EUR/USD has managed to break higher following a drop into the crucial $1.1713 support level earlier in the week. The rally up though the $1.1812 swing high points towards further upside, despite the weakness we are seeing in early trade today.

With that in mind, the 76.4% level ($1.1751) would look like an attractive buying opportunity, should the price fall further. In any case, a bullish outlook is now in play, and would only be negated with a break back below $1.1713. 

GBP/USD rallies into 76.4% retracement

GBP/USD is experiencing a very different picture, with recent upside conforming to the creation of lower highs and lows seen through December thus far.

This points towards a potential move lower from here. Otherwise, a break above $1.3521 would negate this recent bearish pattern. Until then, further downside seems likely. 

USD/JPY falling into key support level

USD/JPY has been selling off sharply this week, following on from a rally into the 76.4% retracement over recent weeks.

The ability to break below ¥111.99 will be key to indicating that the bearish break below ¥111.66 in late November is going to be followed up by a lower high and further downside. As such, look out for the reaction to the ¥111.99 level as a guide for both short and medium-term price action in USD/JPY.

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