USD/JPY on the rise as EUR/USD and GBP/USD fall back
While FX markets are calmer compared to indices, they have seen signs of dollar strength that has helped USD/JPY to rally to a three-week high.
EUR/USD opens below 50-day SMA
EUR/USD fell below the 50-day simple moving average (SMA) at $1.2123, and has continued to fall in early trading.
Further declines below $1.205 will bring the 100-day SMA at $1.1949 into view, and then on towards $1.192, where the price stalled in August. For now the sellers appear to hold sway. This will begin to change if we see a move back above $1.22.
GBP/USD returns to trendline support
The GBP/USD price dropped back once again below $1.37 yesterday, and is now testing trendline support from the early-December lows.
A move below support could spell a drop towards the 50-day SMA at $1.3496, or potentially further, down to $1.347. Should support hold then a bounce back above $1.37 becomes possible.
USD/JPY hits three-week high
The USD/JPY price saw strong gains yesterday, with additional upside this morning that seems to point towards a more extended recovery.
The ¥104.39 high from early January may provide some resistance, but if this is broken further upside seems likely, potentially bringing ¥105.45 into view.
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. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.
Start trading forex today
Find opportunity on the world’s most-traded – and most-volatile – financial market
- Trade spreads from just 0.6 points on EUR/USD
- Analyse with clear, fast charts
- Speculate wherever you are with our intuitive mobile apps
See an FX opportunity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See an FX opportunity?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from just 0.6 points on popular pairs
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See an FX opportunity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
