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

Dollar strength dominates in cable, but both the euro and the yen appear to be gaining ground versus the greenback. 

Source: Bloomberg

GBP/USD eyes $1.2350

The price moved below $1.23 and has created fresh lows, so it looks like the downtrend goes on here.

There is possible support around $1.2211 and then $1.2146 in the near-term, with a rally needing to clear $1.2350 for GBP/USD.

EUR/USD could see support at $1.0380

A steady recovery goes on here, although a spike back to $1.05 yesterday was hit by selling. For the moment, it looks like the buyers are in control but they will need to move through $1.05 to confirm that this bounce has legs.

Otherwise, we look to $1.0409 and then $1.0380 as potential support for the pair.

USD/JPY could see ¥116.95

Despite the occasional spike the sellers are still in charge here. We would need to see a move back above ¥118.20 to reverse the generally negative short-term view.

The next support is around ¥116.95 and then ¥116.63, with a bigger move risking a drop to ¥115.58 and perhaps even as far as ¥113.19. 

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