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

EUR/USD and GBP/USD are gaining ground, yet this upside could be limited. Meanwhile, USD/JPY is breaking lower, likely marking the beginning of a bearish phase for the pair.

EUR/USD pushes through near-term resistance

EUR/USD has managed to rally through the near-term resistance level at $1.1645. This points towards the potential for further short-term upside, coming off the back of a failed attempt to break the May low of $1.1510.

A wider bullish view would come into play with a rally through $1.1852, but until then we remain within a wider downtrend. As such, while we could see short-term upside, there is a good chance we are looking at a short-term retracement of the $1.1852-$1.1510 sell-off.

GBP/USD turning lower from Fibonacci resistance

GBP/USD managed to rally towards the end of last week, with the price pushing into the 61.8% Fibonacci resistance on Friday.

In a similar manner to the move seen in EUR/USD, there is a good chance we could be seeing a retracement set within a wider downturn. A rally above $1.3447 would be required to signal the beginning of a wider bullish phase. Until then, this near-term upside is unlikely to last.

USD/JPY falls out of recent uptrend

USD/JPY has broken below the ¥109.55 support level this morning, negating the uptrend that has been in place over the past month.

This points towards further downside to come, with a break above the most recent swing high of ¥110.22 required to bring back a more neutral outlook. A break above ¥110.75 would be needed for a bullish view to come into play. Until then, further downside looks likely, with ¥109.20 being the next key support level to watch. 

The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.

Find articles by analysts