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

EUR/USD is seeing another brief retracement, but remains within an uptrend, while USD/JPY has failed to break above key resistance. 

GBP/USD notes and coins
Source: Bloomberg

EUR/USD in retracement today

EUR/USD touched its highest level since early October on Friday, so it is no surprise to see a retracement develop today, with an almost empty economic calendar adding to the drift.

Dip buyers came in around $1.10 on Thursday, so any pullback that stays above this level will be defined as a higher low. A move above Friday’s high of $1.1212 will still target $1.13 and then $1.1366.

GBP/USD - a broader drop towards $1.2835 on the way?

GBP/USD keeps running out of steam above $1.30, so a continued failure here raises the risk that we will see a broader drop to the post-March rising trendline, towards $1.2835.

Any break above $1.3060 could trigger a bigger rally in the direction of $1.3427. It would take a move back below $1.2775 to suggest a change of direction.

USD/JPY - a new leg lower at ¥110.11?
Thursday and Friday saw repeated attempts to break above ¥111.68, but the rally fizzled out. Thus we could see a new leg lower, in the direction of support at ¥110.11 for USD/JPY

Below this we have the 200-day simple moving average (SMA) at ¥109.80, and then on to the ¥108 low from mid-April. It needs a close back above ¥111.68 to suggest a turnaround is in the offing. 

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. See full non-independent research disclaimer and quarterly summary.