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

The downtrends in EUR/USD and GBP/USD look to be reasserting themselves, while USD/JPY is on the up once more.

EUR/USD appears to reaffirm downtrend

It may well be that EUR/USD’s downtrend from the April highs has reasserted itself.

The pair faltered last week at $1.17, so further declines below $1.15 will support the bearish thesis. This would open the way to support at $1.13. A close above $1.16 would signal that the buyers have regained control for the time being.

GBP/USD creates new lower high

Declines continue here, with GBP/USD having created a new lower high at $1.30, faltering at the 50-day simple moving average (SMA).

Further losses will bring support at $1.27 and then $1.26 into view. A bounce from above $1.28 would create a new higher low in the current short-term move higher, bringing $1.30 into play once more. A daily close above this level would arguably create a more bullish outlook for the pair.

USD/JPY moves above 50-day SMA

USD/JPY is advancing once again, with buyers stepping in around the ¥111.00 level over the past three sessions.

The move back above the 50-day SMA (¥111.19) adds to the bullish view. Further gains would target the area around ¥112.00 that has acted as resistance since the end of July, and then on to the ¥113.00 area. A close below ¥110.50 is needed to suggest further declines are at hand.

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