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

FX markets continue their recovery from last week’s risk-off moment, as EUR/USD, GBP/USD and USD/JPY all move higher.

EUR/USD recovers in early trade

Overnight weakness for EUR/USD seems to have given buyers another opportunity, but they will need to push the price above $1.16 to clear the way to further upside.

Above here, $1.18 comes into view. A close below $1.15 is needed to suggest a bearish turn.

GBP/USD still on the up

Despite the mixed signals on Brexit, GBP/USD has rallied once again.

Fresh gains target $1.3250, and then on to the September high at $1.33. The bullish view remains unless we see a close below $1.31.

USD/JPY follows the rules

USD/JPY could be executing a classic bounce off a rising trendline, finding support around ¥111.60, where the trendline from the March lows comes into play.

We have yet to see a new higher high intraday however, so a move above ¥112.50 is needed to suggest bullish momentum has the upper hand. Despite this, risk-reward may now favour the bulls, with a view to seeing the current rising trend continue.

Live #IGForexChat

Put your question to the experts during our live IG Forex Chat.
Streaming on 18 October at 6.30pm (UK time).

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material 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 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. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research 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.

Find articles by analysts