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

In the wake of Janet Yellen’s speech the US dollar has moved rapidly lower, stymying the rally in USD/JPY and sending GBP/USD and EUR/USD flying higher. 

Euro
Source: Bloomberg

GBP/USD

Cable has moved by leaps and bounds of late, which has carried the pair back to the $1.4450 resistance level. Just above this is the high from mid-March, at $1.4516, and if the pair can break through here the next area to watch is the February high around $1.4670.

Given the quickness of the move, a dip is likely, and it may see the pair retrace towards $1.4320, or even in the direction of the rising daily trendline at $1.4280.

gbpusd

EURUSD

EUR/USD is now pushing back to the mid-month high just below $1.1350. Just above this is the February high at $1.1390.

The next areas to watch will be $1.1490, the high from last October, and then on to the August high at $1.1710. It would take a move below $1.12 to invalidate the current bullish outlook.

eurusd

USD/JPY

Janet Yellen has certainly spoiled the party here, bringing the uptrend of the past two weeks to a sudden end.

A drop through the 200-hour simple moving average (¥112.50) now seems to suggest that the pair is heading towards possible support at ¥111.50 and then ¥111, with the next level to watch being ¥110, the peak from early October 2014. 

usdjpy

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.