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

Key FX pairs remain within relatively tight ranges, with little sign of resolution thus far.

Dollar and yen notes
Source: Bloomberg

EUR/USD stuck at the weekly pivot

Having endured a sell-off from above $1.14, EUR/USD has now stalled around the weekly pivot at $1.1350. Gains above $1.1366 have proved fleeting, while dips below $1.1350 have likewise been short-lived.

Thus, we have a clear area to watch for a break either way. A move above $1.1366 means a turn back to the highs from last week, and potentially onwards to $1.15, while below $1.1350, the pair could test $1.13 and lower if this level breaks.

GBP/USD holding on

Despite a slew of weaker PMI readings, GBP/USD has managed to hold its ground commendably well over the past three days, maintaining its resemblance to the price action in EUR/USD.

Moves above $1.2950 have been contained, but so have dips below $1.2921, the weekly pivot. Thus we wait for a definitive break either way to see which direction is the path of least resistance for cable.

USD/JPY unable to move up

Dips here below ¥113 continue to be bought, but so far USD/JPY is not able to make much upward progress. A close above ¥113.50 and then the Wednesday high of ¥113.68 would suggest further gains in the direction of the May high at ¥114.37.

A drop below ¥112.80 would likely mark the end of the rising trend from the June lows. 

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