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

USD/JPY is one to watch today and into next week, after it broke key support. 

EUR/USD steadily recovers

The volatility of equities was not seen in FX markets, with EUR/USD recovering from a test of the downward trendline.

If this continues to hold then $1.2240 and then $1.2165 remain as downside targets. A rally above $1.2360 would suggest a possible breakout to $1.2388, $1.2411 and then $1.2445.

GBP/USD may fall back

GBP/USD rallied to $1.42 yesterday, but has since fallen back, and may now move back to $1.4070 support.

A steady rising trend from the March lows could see a dip back to $1.40, which remains a buying opportunity.

USD/JPY nears 2016 low

USD/JPY broke below the vital ¥105.00 level yesterday, and is now firmly below it.

On the weekly chart the next destination is ¥101.19, the October 2016 low, and then ¥100.08 and ¥98.98. A recovery back above ¥105.24 would suggest a rebound, but it needs a move above ¥106.50 to break the sequence of lower highs. 

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