EUR/USD and GBP/USD weaken, while USD/JPY begins to rise

The big news in forex markets has been the YouGov seat projection, which has hit GBP/USD hard. Meanwhile, USD/JPY is continuing to rally off the 50-day SMA.

EUR/USD hits trendline resistance

The EUR/USD pair has continued to weaken overnight, after a rally towards $1.11 ran out of momentum and created a lower high.

Lower highs have been seen since 4 December, so a rally through trendline resistance of the past week needs to break the growing negative short-term view. Further losses target $1.1055 and then $1.10. A break above $1.112 would open the way to the 200-day simple moving average (SMA) at $1.1156.

GBP/USD hit by polling news

Last night’s YouGov seat projection prompted a sharp drop in GBP/USD, driving the price back from $1.32.

Below $1.31 the price will head towards $1.304, and then to $1.2976. A move below here would signal that a much deeper retracement is developing, although the uptrend from the August lows is firmly intact.

USD/JPY aims to continue Wednesday's gains

Yesterday witnessed a USD/JPY bounce off the 50-day SMA (¥108.58), and while the price has retraced slightly, if it can hold the sequence of higher lows seen over the past two days this week then a buying opportunity on the daily chart may develop.

Longer-term gains head towards ¥109.50, the high from the end of November. A break below ¥108.50 provides a more bearish short-term view.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

Start trading forex today

Trade the largest and most volatile financial market in the world.

  • Spreads start at just 0.6 points on EUR/USD
  • Analyse market movements with our essential selection of charts
  • Speculate from a range of platforms, including on mobile

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.