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

Both the euro and sterling are expected to fall against the dollar today, while the yen continues to charge higher despite BoJ attempts to quell its incessant appreciation.

EUR/USD forex pair
Source: Bloomberg

EUR/USD back towards range top
EUR/USD has rallied back towards the top end of its $1.1335-$1.1438 range following on from a strong Friday session. This means we are now looking for bearish reversal signs to continue this recent trend. Shorter intraday timeframes are useful for this type of situation.

Ultimately, it seems a safer bet to expect a move towards the lower end of this range than to predict an upside breakout. As such, a bearish view is held unless we see a closed hourly candle above $1.1450.

GBP/USD selling from Fibonacci resistance
IN_GBPUSD is selling off from the 76.4% Fibonacci level, following on from a period of upside in sterling.

Ultimately, we have a very clearly defined downtrend in play throughout April so far. Thus, a bearish view is held unless we see an hourly close above $1.4172. The next key support level is $1.4041.

USD/JPY back to April low
IN_USDJPY has sold off once more this morning, in a continuation of Friday’s weakness, which came after a pullback to the 50% retracement.

With price currently at the ¥107.67 support level, we will need to see a closed hourly candle below this level to indicate a likely next leg lower for the pair. In which case the ¥107.00 head and shoulders projection is the next key support level. 

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