FX levels to watch – EUR/USD, GBP/USD, USD/JPY

The euro and sterling are higher this morning, while the dollar continues to hold its own against the yen.

EUR/USD bounce gathers pace

EUR/USD has rallied strongly from the low at the end of last week, and looks likely to challenge downward sloping resistance from the 14 May high.

A break above this line requires a move above $1.1755, and then a close above $1.18 to create a higher high above that from the beginning of last week.

GBP/USD higher ahead of CPI

GBP/USD remains stuck in a downtrend from the May high, with a push towards trendline resistance yesterday being defeated.

However, a move above $1.33 would break resistance, and then the $1.3350 area comes into play. A turn lower targets $1.31 and then $1.3040.

USD/JPY holds ground after breakout

The price for USD/JPY has dropped back slightly after breaking out last week, but the uptrend is still in place.

A near-term bounce will challenge the high at ¥112.80, while a further decline would likely see buyers emerge around ¥110.00.

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