EUR/USD moves up while GBP/USD edges lower and USD/JPY downtrend reasserts itself

The bounce in EUR/USD seems set to continue, while GBP/USD stalls and USD/JPY pushes down after Monday’s failed recovery.

EUR/USD makes further gains

EUR/USD has continued to move higher for the past three sessions, having found support around $1.1775 last week and creating a higher low.

This helped to reinforce the more bullish view that has emerged since the beginning of the month. Further gains target $1.19, but a break above this level is still needed for a more bullish longer-term view to emerge.

GBP/USD gains stall for now

Friday’s recovery maintained the uptrend in GBP/USD, but some momentum is fading as we move further into the week.

Having created a new higher high last week the longer-term upward move is not yet in peril, but a drop below $1.31 would bring another test of rising trendline support into view. A renewed move higher targets $1.33, the high from last week.

USD/JPY downtrend back in play

USD/JPY has moved back below the 50-day simple moving average (SMA) of ¥105.13, creating another lower high and maintaining the long-standing downtrend.

Yesterday’s attempted rally back towards the 50-day SMA was quickly defeated and further losses have been seen since then. Further declines will target ¥103.50, while a move above ¥105.50 is required to reverse the ongoing negative view.

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