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

While the euro struggles at resistance, buyers continue to push USD/JPY higher.

EUR/USD struggles to clear $1.18

EUR/USD’s price rallied to $1.18 yesterday, but then dropped back.

A close above this level continues to elude the pair, but it remains in an uptrend from the August lows. The near-term bullish view persists unless we see a close below rising trendline support, around $1.1660.

GBP/USD remains in an uptrend

GBP/USD recovered from Friday’s slump, creating a higher low as it held above $1.3040 support.

Further gains target $1.3204 and then $1.33. A drop below $1.3040 would suggest a move back towards rising support, around $1.2990. An ongoing failure to break $1.33 raises the prospect of a continuation of the downtrend seen since April.

USD/JPY surge continues unabated

Since the beginning of the month the intraday dips in USD/JPY have been steadily bought, so we would need to see a move below ¥112.40 to break this run of higher lows.

From here a deeper retracement towards the post-March rising trendline, down towards ¥111.30, could see fresh buying pressure emerge. The current target remains the ¥113.39 high from late July.

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