EUR/USD and GBP/USD stabilise but USD/JPY stuck below resistance

EUR/USD and GBP/USD suffered sharp drops yesterday, but some signs of stabilisation have been seen, while USD/JPY is yet to break higher.

EUR/USD attempts to stabilise

The EUR/USD pair plunged yesterday from $1.20, but the decline has slowed as the price reaches $1.19.

A possible higher low here might provide a further buying opportunity for a renewed push towards $1.20 and higher. Alternatively, further declines bring rising trendline support from the 12 August low into view around $1.183.

GBP/USD continues to climb

Dollar strength continued to weigh here as well for GBP/USD, pushing the price back from its latest high.

While the price has dropped below the 50-hour simple moving average (SMA) of $1.3384, it has moved momentum indicators back towards oversold readings, providing the potential for a new higher low and an eventual push higher. Further declines bring $1.325 into view, particularly as no-deal Brexit headlines make a return.

USD/JPY edges higher

The price continues to recover some of the ground lost last week for USD/JPY. However, gains have stalled at ¥106.10, with no sign yet of a break higher.

However, a higher low yesterday at ¥105.60 provides hope of a rise in bullish momentum, potentially opening the way towards ¥106.80 and higher. A drop below ¥105.70 might bring a more bearish view into play raising the prospect of a move back towards ¥105.25.

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.