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

Sterling continues to fly, given more energy by economic news. Meanwhile, USD/JPY seems to be rolling over once more.

Source: Bloomberg

EUR/USD unable to break through $1.20

The bounce from yesterday’s lows is running out of steam, with the price for EUR/USD unable to push above $1.20. The lack of news flow is undoubtedly contributing to the euro’s relative quiet at present.

Targets on the upside remain at $1.2042 and then $1.2067, while it seems unwise to become bearish on the pair unless we see a move back below $1.18.

GBP/USD with a bullish outlook

Cable continues to hurtle higher, as yesterday’s consumer price index (CPI) reading causes fresh bullish momentum to develop for GBP/USD.

There is now only the $1.3427 area as resistance in the near term, and then on to $1.3675. Support is likely to come at $1.3273, and then $1.3150.

USD/JPY with potential for more upside

USD/JPY may well have created a new lower high as it turns lower from the ¥110.29 level.We would then look for a resumption of the downtrend.

A move back above ¥110.29 negates this, and should it break ¥110.67, more upside is to be expected.

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