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CFDs are complex instruments. 72% of retail client accounts lose money when trading CFDs, with this investment provider. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.

EUR/USD and GBP/USD in retreat as USD/JPY rallies

Dollar strength post-FOMC is bearing down on the euro and sterling, but has given the greenback a new lease of life against the yen.

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EUR/USD suffers sharp fall

The Federal Reserve (Fed) meeting gave the dollar a lift and has driven EUR/USD to its lowest level since the second half of April.

The sellers do appear to have the upper hand, although the downward move now faces challenges at $1.194 and $1.188. Below this the April low at $1.17 comes into view. A recovery back above $1.19 might spell the beginning of at least a short-term bounce.

EUR/USD chart Source: ProRealTime
EUR/USD chart Source: ProRealTime

GBP/USD retracement potentially limited?

The losses have been somewhat more measured here, but GBP/USD has fallen out of the trading range of May and June, towards the 100-day simple moving average (SMA) at $1.1937.

This remains within the broader uptrend, however, with previous higher lows in the $1.37/$1.38 area yet to be challenged in any meaningful way. Dip buyers will be on watch for a recovery above $1.402 and the 50-day SMA that could spell another move higher.

GBP/USD chart Source: ProRealTime
GBP/USD chart Source: ProRealTime

USD/JPY rallies after FOMC meeting

Jerome Powell has finally given USD/JPY the boost it needed, as the pair rallied to a higher high on changed expectations regarding Fed policy.

The April peak at ¥110.96 is now back in sight, while the bounce from the June low at ¥109.16 remains in place and leaves the buyers firmly in charge.

USD/JPY chart Source: ProRealTime
USD/JPY chart Source: ProRealTime

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