Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

​​​​​EUR/USD and GBP/USD keep rallying, while USD/JPY comes under fresh pressure​​​​​

​​Dollar weakness is driving EUR/USD and GBP/USD higher, while USD/JPY has fallen as the yen strengthens on more strong Japanese data.

USD/JPY Source: Bloomberg

​​​EUR/USD surges to two-month high

​The ​​​EUR/USD rallied to its highest level since mid-January on Friday, continuing its recovery from February’s low.

​Since then the price has broken through trendline resistance, and moved back above the 100-, 200- and now the 50-day simple moving average (SMA). The rally has carried the price back above $1.09, and the next target becomes the $1.10 highs from November.

​A pullback towards $1.086 might see rising trendline support from the February low tested.

EUR/USD chart Source: IT-Finance.com
EUR/USD chart Source: IT-Finance.com

​GBP/USD continues to rally

​The ​GBP/USD has also enjoyed a good bounce over the past week, which has finally carried it above the December and January highs around $1.28.

​From here, a move towards $1.30 can be contemplated. Some consolidation now back below $1.28 might not dispel the bullish outlook entirely, and even a further dip towards $1.2680 would still likely test rising trendline support from early February.

GBP/USD chart Source: IT-Finance.com
GBP/USD chart Source: IT-Finance.com

​USD/JPY nears 200-day moving average

​The ​USD/JPY rally from the January low has taken a sharp knock, with the price dropping back to its lowest level since early February.

This was already underway last week but commentary from the Bank of Japan (BoJ) about an earlier than expected exit from negative rates saw the yen strengthen further, and today’s GDP data, which showed that Japan avoided a contraction in quarter 4 (Q4), has given traders further reason to buy the yen.

​​The 200-day SMA becomes the next target to watch for support, while below this comes the ¥145.00 level. A rebound back above ¥148.00 might provide hope that a further recovery is underway.

USD/JPY chart Source: IT-Finance.com
USD/JPY chart Source: IT-Finance.com

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. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.

Start trading forex today

Find opportunity on the world’s most-traded – and most-volatile – financial market

  • Trade spreads from just 0.6 points on EUR/USD
  • Analyse with clear, fast charts
  • Speculate wherever you are with our intuitive mobile apps

See an FX opportunity?

Try a risk-free trade in your demo account, and see whether you’re onto something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See an FX opportunity?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Get spreads from just 0.6 points on popular pairs
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See an FX opportunity?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.