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

Dollar bulls are running rampant in USD/JPY while euro watchers are now waiting for the ECB’s latest decision. 

Pound sterling
Source: Bloomberg

GBP/USD disappointing after the post-budget rally

Yesterday’s GBP/USD rally around the budget failed to shift the general trend, although, for now, the bulls are managing to hold the price above $1.2150.

The next areas to watch are $1.2065 and then $1.1916, even with the pair heavily oversold on the daily chart, the path of least resistance appears to be lower. It will take a move back above $1.2390 to reverse the bearish outlook here.

EUR/USD unsure ahead of Draghi’s decision

Today will likely see plenty of volatility as the European Central Bank issues its last decision. The EUR/USD has been in steady retreat since the 6 March failure to break above $1.06.

However, $1.05 has held so we could see a rally if Mario Draghi hints at any early end to stimulus. The levels to watch on the upside are still $1.0620 and then $1.0680. 

USD/JPY lifted by the ADP

Yesterday’s ADP reading sent the US dollar flying, and we have seen the USD/JPY price push above the downtrend line off the January highs. The price is also above the 50-day simple moving average (¥114.10) for the first time since late January.

Dips have been firmly bought over the past week and, with the downtrend broken, more of the same looks likely. Further upside targets lie around ¥115.28, Y116.55 and then back to ¥118. 

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