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

The euro and sterling remain firmly under pressure, while USD/JPY is enjoying a strong rally.

EUR/USD in key support area

EUR/USD has dropped below the rising trendline that has held in place since last April. It is now into the key support area that has held around $1.22 since the beginning of February.

Below this, $1.1950 would be a possible area of support. A turn higher continues to target $1.24 and $1.2520.

GBP/USD holding despite drop

While the price for GBP/USD is dropping below $1.40, it does continue to hold the 50-day simple moving average (SMA) of $1.3989.

However, a fresh bounce from here would target $1.42 and then $1.4345. Further losses will test support at $1.3836, $1.3711 and then $1.3659.

USD/JPY in a strong rally

USD/JPY has enjoyed a strong rally, breaking above ¥107.30 for the first time since early March.

From here, ¥108.00 comes into view. A failure to hold above ¥107.32 would trigger a broader fall back towards ¥105.00.

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