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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 move up as USD/JPY weakens

The dollar has edged back down in the wake of Powell’s testimony bolstering EUR/USD and GBP/USD but pushing down USD/JPY.

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EUR/USD recovers as dollar weakens

EUR/USD rebounded sharply yesterday from its lows as Jerome Powell’s testimony weakened the dollar. For now the buyers might have a chance to push the price back towards $1.188, and above this a more bullish view may prevail.

A failure to hold yesterday’s gains hands the initiative back to the sellers and brings $1.177 into view.

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

GBP/USD on the up

A more bullish view continues to prevail here, as GBP/USD moves up from the losses earlier in the week.

Renewed gains target $1.39, and then on to $1.40, with buyers likely to add on weakness on the way up to this latter target. For now the bearish view is in abeyance, but would be revived with a move back below $1.374.

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

USD/JPY under pressure after Powell testimony

The rally of USD/JPY has stalled as Powell reins in tapering expectations and hits the dollar.

The bounce from the 50-day simple moving average (SMA) last week looks to have been a false dawn, and now we wait to see if the price can hold the 50-day MA (¥109.89) once again. The uptrend from late April is under threat, and a drop below ¥109.60 would be a negative development, although it might not bring it to an end entirely.

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

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