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

A weakening dollar has led to a bounce in EUR/USD and GBP/USD, and has put a dent in USD/JPY’s rally.

EUR/USD clambers above $1.17

EUR/USD has recovered from the lows of last week, and is attempting to move further above $1.17.

A close above $1.1744 would be viewed as more bullish, targeting $1.18 and then $1.1852. A further decline today would see the $1.15 support zone tested once again.

GBP/USD bounces from recent lows

Sterling bulls wrenched back control on Friday, but GBP/USD still recorded a new lower low last week.

A close above $1.3306 is needed to indicate that the post-May downtrend has run its course. A lower high in the next few days would continue to be regarded as a selling opportunity, targeting $1.30 and lower.

USD/JPY drops back to support

USD/JPY has retraced towards rising trendline support from the March lows.

A bounce from here would target the ¥113.00 level, but it is disappointing to see the price back below the post-2015 downtrend line. A bounce back above ¥111.60 would negate this bearish view. Further declines are likely to find support around ¥110.00.

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