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EUR/USD and GBP/USD move down as USD/JPY surge continues

Dollar strength continues to lift USD/JPY while bearing down on EUR/USD and GBP/USD.

EUR/USD starts the day on a weak note

Yesterday saw EUR/USD lose ground, as a resurgent US dollar weighed on FX markets. Recent losses have been contained around $1.206, so a drop below this marks a loss of support and opens the way to $1.1939 and then $1.188.

Trendline resistance from the January high has capped gains over the past two weeks, but at present a move back above $1.21 would mark a breakout to the upside.

GBP/USD hits bottom of recent range

GBP/USD gains have been contained around $1.373 over the past two weeks, but losses have been halted around $1.366, with buyers repeatedly stepping in to defend this level.

The stronger US dollar may continue to bear down on the pair, opening the way to the 50-day simple moving average (SMA) at $1.3523, or down to $1.347 as possible support.

USD/JPY resurgence continues

USD/JPY has enjoyed a remarkable week, rallying hard from last weeks’ higher low to hit ¥105.00 and a higher high. This is the most sustained price action above the 50- and 100-day SMAs since the beginning of June.

For now the buyers continue to hold sway, targeting ¥105.49 and then ¥106.11. Sellers have not been able to hold back the rally of late, but a reversal below ¥104.00 would signal that a new move to the downside is underway.


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