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

The counter-Brexit move continues apace, with EUR/USD, GBP/USD and USD/JPY all claiming back ground lost on Friday. However, how long will this last?

Pound coin and dollar notes
Source: Bloomberg

EUR/USD triangle follow through continues
EUR/USD weakness overnight appears to have hit the buffers, with the pair finding support once more upon the ascending trendline that underpinned the triangle formation earlier in the week.

With that in mind, further gains appear likely where the next resistance levels to watch are $1.1131 and $1.1180. We would need to see an hourly close back below $1.1049 to negate this uptrend.

GBP/USD looks set to rally once more
IN_GBPUSD looks like it is set to break higher once more, as the recovery from Friday’s sharp depreciation looks set to continue. Price fell overnight moving back towards the 76.4% support level.

Ultimately for us to move out of this downturn, we would need to see a break through $1.3467, which would subsequently look towards $1.3534 and $1.3563 as the next resistance levels. Alternately, a break and hourly close below $1.3291 would provide us with a bearish outlook once more.

USD/JPY showing signs of weakness

IN_USDJPY temporarily fell below the ¥102.49 support level this morning, following on from a clear uptrend established after Friday’s lows. We still remain within a short-term uptrend, yet the fact we temporarily broke below this support level could be a sign of things to come.

As such, we would need a break back above ¥103.02 to confirm this rally remains intact. Otherwise, there is the potential for a failure around the ¥102.89 (76.4% retracement). As such, an hourly close above ¥103.02 would provide a bullish view, with an hourly close below ¥102.45 required to signify a return to the bearish outlook.

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