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

Risk appetite appears to be returning, as the US gets back to work following this holiday.

EUR/USD looks to rally

Having broken the downtrend line yesterday, the price has moved higher for EUR/USD.

The next target would be the mid-June highs at $1.1850. A short-term sequence of higher lows from the 28 June low suggest that the buyers remain in charge, with a break below $1.1630 needed to dispel this view.

GBP/USD pushes higher again

Steady buying has propped up GBP/USD as well over the past week, as short-term dips from the 28 June low have found buyers.

The near-term areas of resistance to watch are $1.3312 and then $1.35. While a break back below $1.3160 would negate this more bullish view.

USD/JPY stuck in range

USD/JPY finds itself stuck in a tight range, between ¥110.50 and ¥110.84.

Dips over the past two sessions have found buyers, but the price has had difficulty moving on above ¥110.84, so a close above here would be decisive and open the way to ¥111.39. It looks like a move below ¥110.20 would negate this outlook.

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