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

While the euro rises and the dollar falls against the yen, sterling has climbed to a level not seen since June 2016. 

EUR/USD retests $1.24

Weakness last Thursday proved to be a strong buying opportunity, as EUR/USD pushes back above $1.24.

A close above $1.24 would signal another attempt to target $1.25 and then $1.2570, the high from mid-February. The $1.22 zone has been strong support since mid-January, so the buyers remain in charge until we get a daily close below this level.

GBP/USD continues to climb

GBP/USD closed near to the January high of $1.4345, and this morning has opened at a new post-Brexit vote high.

The next target on the upside is $1.4668. Intraday dips have been bought throughout the month so far, and it will take a move back below $1.41 to reverse the bullish outlook.

USD/JPY returns to ¥107

USD/JPY has faltered, falling back to ¥107.00 after trying to break higher last week.

Further declines will see the ¥106.60 level, key support last week, tested, and then below this ¥105.24 and then ¥104.63 will come into view. A close above ¥107.80 would be needed to suggest a turnaround is in play.

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