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

A weakening US dollar has seen USD/JPY take a sharp drop, while both sterling and the euro are enjoying a bounce.

EUR/USD pushes higher for now

EUR/USD has continued to climb, breaking through trendline resistance and targeting the $1.15 level, the high from early November. From here $1.1554 and then $1.162 come into play.

The steep rally over the past few days could begin to moderate, but dips to $1.138 could find buyers.

GBP/USD stalls at $1.29

While GBP/USD has rallied off the lows from last week, gains above $1.29 have not been forthcoming.

A close above this level would open the way to $1.30, the peak from the first half of November, while a fresh drop targets $1.2773 and then $1.269.

USD/JPY bears take charge

USD/JPY has continued to decline, and a small rally towards ¥112.60 has been met with fresh selling. Unless the price recovers the ¥113.40 level, then any rally looks to be a selling opportunity.

The next levels to watch on the downside include ¥111.82 and then ¥111.38.

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