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

Buyers have returned in earnest to EUR/USD, while USD/JPY is seeing some weakness for a change.

Sterling coin and dollar note
Source: Bloomberg

GBP/USD comes under pressure

After trying to push through $1.2477 yesterday, GBP/USD is coming under some early pressure.

The sellers will need to push the price through $1.24 and then on to the lows of the beginning of the week, just above $1.23, with a close below here opening the way to $1.21.

A bullish move needs to close above the 50-day simple moving average (SMA), currently $1.2508.

EUR/USD rally to test mid-week resistance

EUR/USD fought hard over the past two days to hold above $1.0525, the key support level from early December 2015. Having formed a base here, the price has now bounced to $1.06.

A further rally needs to move above resistance from Tuesday/Wednesday at $1.0650, and then above here the targets are $1.0750 and then $1.0825. 

USD/JPYUSD/JPY experiences weakness

USD/JPY has fallen back from its peak near Y114, but it is not yet clear whether this is the end of the rally.

We will need to see sustained price movement below Y112, although a strong move below the 50-hour SMA (Y112.77) could provide the first clue.

Below Y112 the targets are Y111.44 and then Y107.49.

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