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

Recent dollar strength has knocked back the longer-term rallies in EUR/USD and GBP/USD, but the broader uptrend is intact.

EUR/USD aims for a rebound

The modest pullback in this trend for EUR/USD last week stands in stark contrast to the volatility in indices. Still, we saw the price give up most of its gains of late January.

Thursday and Friday saw buyers enter to defend the $1.22 zone, but gains towards $1.23 found sellers. Above $1.23, the $1.2323 and then $1.25 areas come into play, if the uptrend reasserts itself. Meanwhile, further declines will test $1.2165 and then $1.2092.

GBP/USD retracement continues

There was a sharp reversal last week for GBP/USD, but the broader uptrend is intact.

The next support to watch out for would be the $1.3659 area, with the 50-day simple moving average (SMA) at $1.3679 just above this. Below this, the March 2017 line comes into play. It would need a move below $1.33 to put a real dent in the current uptrend.

USD/JPY stabilises after falls

USD/JPY bounced off the ¥108.13 level, although the downtrend from the recent highs persists.

Further gains would move towards the ¥110.70 zone, while a close below ¥108.13 would open the way to the ¥107.30 level.

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