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

Sterling weakness remains the lead story, while USD/JPY is picking itself up off the floor after a drubbing yesterday. 

Pound and US dollar notes
Source: Bloomberg

GBP/USD avoiding October clears – for now

Even after a third straight session of losses for sterling, the pair is yet to move firmly below the October lows.

If it does then $1.1943 is the first area to watch, and then down to the low seen at the October crash, to $1.18. A rally needs to clear the $1.22 area to open the way to the $1.24 zone.

EUR/USD targets late-December highs

Weakness yesterday was swiftly reversed, with the pair shooting back to $1.06, but unable to push on through the highs seen at the end of last week.

If it does, then $1.0656 and $1.0780 come into play, which would take EUR/USD back to the highs seen at the end of December. Support levels are to be found at $1.05, and then $1.0374.

USD/JPY does a 180

Yesterday saw a remarkable reversal, marking a 180 degree turn from Friday’s gains.

However, the slump for USD/JPY ran into support at ¥115.24, around last week’s lows, so this is the level bears need to break to open the way to the 50-day simple moving average at ¥113.11.

If ¥115.24 holds, then ¥116.88 and ¥118.69 come into view. 

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.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.