GBP/USD rallying, while USD/JPY hits trendline support

EUR/USD and GBP/USD continue to push higher, while USD/JPY is aiming to hold rising trendline support from the August low.

EUR/USD looks to push higher

The EUR/USD has recovered to sit above the 50-day simple moving average (SMA) of $1.1043, having created a higher low last week around $1.10.

Further upward momentum will see the price challenge the $1.1175 peaks from October, and above this a higher high is created, helping to reinforce the more bullish view. A reversal below $1.10 would be needed to reverse this outlook and suggest a renewed push lower is underway.

GBP/USD targets $1.30 again

The GBP/USD bulls will be looking for the pair to maintain its progress towards $1.30, which has held back progress since mid-October.

The price has been rallying since early October, and if the price can clear $1.30 then it has a chance to target $1.317 and $1.33. A more bearish view would require a daily close below $1.277, so until this happens any drop towards this support zone would be a restatement of the $1.277-$1.30 trading range of the past month.

USD/JPY aims to hold rising trendline

The USD/JPY uptrend has weakened here, but over the past few days the price has stabilised around rising trendline support, with dips towards ¥108.20 finding buyers.

If it can recover above ¥109.00 then a renewed push higher would be in the offing. A bigger retracement would develop if the price drops through the 50-day SMA at ¥108.25.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

Start trading forex today

Trade the largest and most volatile financial market in the world.

  • Spreads start at just 0.6 points on EUR/USD
  • Analyse market movements with our essential selection of charts
  • Speculate from a range of platforms, including on mobile

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.