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

Dollar strength has revived, as USD/JPY breaks a three-year downtrend.

JPY
Source: Bloomberg

EUR/USD back under pressure

The broader declining trend looks to have reasserted itself over the past two days, as EUR/USD continues to drop back from the high near $1.18 earlier in the week.

Further declines will bring the $1.15 support zone into play again, while a move back above $1.18 would suggest a retest of the June high at $1.1852.

GBP/USD turns lower

GBP/USD has clocked up a new lower high this week, continuing the declining trend seen since mid-May.

Further falls will take the price below $1.3204 and suggest another move towards possible support around $1.3040. A daily close above $1.3364 is needed to break the short-term downtrend from the May highs and establish a new higher high.

USD/JPY surges

The USD/JPY price has broken out from a downtrend line that has been extant since the first half of 2015.

Pullbacks towards ¥110.84 may continue to find buyers, while new upside targets are to be found around ¥113.64 and then ¥114.50.

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. 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. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.