EUR/USD, GBP/USD slip while USD/JPY rises despite risk of BoJ intervention
Outlook on EUR/USD, GBP/USD and USD/JPY as a new month and quarter begins.
EUR/USD slips back towards support
EUR/USD thus continues to come off its June six-week high at $1.1012 and currently probes the 55-day simple moving average (SMA). Below it lies good support at $1.0845 to $1.0835, the recent lows, a fall through which would engage the $1.0789 April low.
Minor resistance above Friday’s high at $1.0931 can be found at last Thursday’s $1.0941 high.
GBP/USD capped by resistance line
On Thursday GBP/USD slid to $1.2591 on worries that the major UK utilities company Thames Water has financial difficulties and might have to be nationalised but then recovered into month and quarter end on Friday, both of which in positive territory.
Nonetheless GBP/USD seems to be struggling at the one-month resistance line at $1.2707, slightly above which sits the $1.2759 late-June high. If overcome, further upside towards the $1.2848 June peak may unfold.
Initial support is to be found at last Thursday’s $1.2667 high below which lies last week’s low at $1.2591. If slipped through, the $1.2544 early-June high could be revisited.
USD/JPY remains in seven-month highs
USD/JPY continues its gradual advance with the late-October 2022 at ¥145.11 having practically been reached last week, despite the risk of currency intervention by the Bank of Japan (BoJ) remaining in play.
Above it lies the September 2022 high at ¥145.90 which represents the next upside target.
Minor support below Thursday’s ¥144.14 low can be spotted at the 23 June ¥143.87 high.
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