FX levels to watch – EUR/USD, USD/JPY

EUR/USD has begun showing signs of weakness, while USD/JPY looks set for further upside.

Source: Bloomberg

EUR/USD recovery takes a hit

EUR/USD has been weakening overnight with the pair falling below the crucial $1.1829 level, following a break below trendline support.

This points towards a heightened chance of further downside for the pair, with the price seemingly respecting the previous resistance level of $1.1862. A break above $1.1880 would negate this short-term bearish view.  

USD/JPY looks to continue recent gains

USD/JPY pulled back into the 76.4% retracement overnight, with the pair subsequently turning higher once more.

The ability to remain above ¥113.20 will be key to maintaining the recent ascent, and until that happens, a bullish view is in place. The ability to break through ¥113.75 will provide a bullish wider view, yet for now, short-term gains seem likely. 

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