EUR/USD and GBP/USD recover, while USD/JPY looks to break higher

EUR/USD and GBP/USD are managing to make some gains, while USD/JPY is still hovering below recent resistance.

EUR/USD continues bullish turn

EUR/USD has managed to move above the 50-hour simple moving average (SMA) of $1.074 for the first time since 10 March.

The price has managed to create higher highs and lows on the hourly time frame, and has cleared $1.08, the highs of Friday and Monday. A move back below $1.065 invalidates the more bullish view, but the recent sharp drop revives the EUR/USD downtrend and suggests that a bigger rebound towards $1.10 would be a possible selling opportunity.

GBP/USD rebound looking unsteady

GBP/USD has moved off the lows of the past week, but it’s running out of momentum as it nears $1.17.

A turn lower from here heads towards $1.142, while a more bullish view in the short term targets $1.19. This development would reinforce the view that the pair has bottomed out for the time being, and would target $1.2366. A reversal below $1.14 signals that more losses may be near at hand.

USD/JPY looks for a breakout

USD/JPY continues to climb, having built a series of higher lows over the past three sessions.

However, it has yet to really clear the area around ¥111.50. If it can do this then ¥112.30 comes into play, and then from here ¥113.64. A reversal below ¥109.50 would be regarded as a bearish development.

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