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

Dollar weakness is making itself felt this morning, as the euro soars and the yen begins to see further gains. 

US dollar
Source: Bloomberg

EUR/USD bulls are in charge

In the space of three days EUR/USD has gone from $1.0850 to $1.1027, and so far there is no sign of it stopping. From here we look to $1.1141, and then $1.1279.

The breakout from the late April high seems to confirm that the bulls are in charge, so any retracement should be watched for as a buying opportunity. 

GBP/USD pushes higher

Dollar weakness is helping GBP/USD to move higher once again, although the $1.2950/$1.30 area has held back progress over the past two weeks. Above here $1.3058 and then $1.3427 remain the upside targets.

It would seem futile to become particularly bearish on the pair unless it manages a daily close below $1.2775.

USD/JPY - a turnaround in play?

The rally yesterday petered out below ¥114, creating a new lower high for USD/JPY, but for the time being the ¥113.20 level continues to hold. A move below here would strengthen the case for a continued downtrend on the hourly chart. Further losses would target ¥112.50 and then ¥111.68.

A close back above ¥114 would start to suggest a turnaround is in play, while a close above ¥114.50 would invalidate the bearish hypothesis.

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