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

USD/JPY has held on to the bounce from earlier in the week, but EUR/USD and GBP/USD are losing ground once again.

EUR/USD on the back foot

EUR/USD has dropped back rapidly over the week, and last week’s low at $1.1432 is now likely to be tested.

A close below this opens the way to $1.13, the August low. A close above $1.16 is needed to suggest that a more bullish view prevails.

GBP/USD tests key moving average

While the price is holding above the 50-day simple moving average (SMA) at $1.3005, the overall picture for GBP/USD seems bearish given the declines seen over the past week.

It would require a close above $1.32 to reverse this view. Further declines target $1.2926, and then down to $1.2773.

USD/JPY buyers still in control

USD/JPY’s bounce off the lows from the beginning of the week remains intact, and a fresh drop yesterday brought out the buyers.

Above ¥112.75 the price targets ¥113.64 and then ¥114.49. A close below ¥111.62 is needed to negate rising trendline support and suggest a more bearish view is developing.

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