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

Sentiment has turned cautious following last night’s Fed move, with a move to safety seen across the FX space.

EUR/USD testing rising trendline

EUR/USD has dropped back once more from resistance, around $1.18.

It has this morning succeeded in bouncing off the rising trendline from the August lows, but a break below $1.17 would likely invalidate this support, bringing $1.1554 into play as horizontal support. A rally from the rising trendline would still need to clear the $1.18 zone to suggest a fresh move higher was firmly in progress.

GBP/USD falls back from mid-week highs

A stronger dollar continues to weigh on GBP/USD too, with the pair retreating from yesterday’s highs above $1.32.

Rising trendline support from the August lows is still in play here too, but this would require a move back to $1.30, with $1.3040 horizontal support also nearby. A rally back above $1.32 brings $1.33 into view as a target.

USD/JPY hits ¥113 and retreats

The ¥113.00 level continues to act as strong resistance for USD/JPY, and further declines may suggest a double top has been created.

A decline may aim for the March rising trendline, targeting ¥111.00. Above ¥113.00, the price will head towards the December 2017 peak at ¥113.63.

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