EUR/USD rallies, while GBP/USD holds steady and USD/JPY drops

The euro has rallied through resistance in early trading, while cable has found support once again at $1.22.

Is EUR/USD showing signs of life?

The EUR/USD pair has pushed higher in early trading, moving above $1.100 and showing notable bullish momentum.

A close above $1.100 helps to provide a more bullish view in the near term, targeting $1.109 and the September high. Short-term weakness towards $1.097 may provide another buying opportunity.

GBP/USD holds at $1.22

While the GBP/USD pair has come under heavy pressure this week, it has managed to hold $1.22, the lows from last week. If it can continue to hold this level then a push back to $1.23 may materialise.

A close below $1.22 opens the way to $1.20 and the low from early September. Overall, the longer-term downtrend remains in place.

USD/JPY knocked lower

USD/JPY spiked to the top of its current downward channel this morning, and then fell back. However, while this is a potentially bearish development, we have seen higher lows since last Thursday, suggesting at least another challenge of the upper channel bound is likely.

However, if the price moves above ¥108 then the pair will acquire a more bullish view, having broken out of the channel.

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