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

Major resistance levels in play for EUR/USD and USD/JPY, while GBP/USD bounces from a notable support level.

British pound and US dollar
Source: Bloomberg

EUR/USD consolidates below key resistance

EUR/USD is trading sideways this morning, following an attempted recovery back into the crucial $1.1450 resistance area. The descending trendline at that level represents a key long-term resistance to keep an eye out for, and as such we are at a pivotal area, which will either see this market reverse lower, or punch higher.

A four-hour close above $1.1450 would provide a strong bullish signal for a continuation of the recent strength. Given the shallow nature of this recent consolidation, it would look like we are set for further upside. However, with key resistance ahead, it may make sense to await the resolution.

GBP/USD bounces from trendline support

GBP/USD has managed to regain some ground following a fall into trendline support. The break above $1.2978 portrays this July weakness as a potential precursor to further upside. But, for now it looks as if the selling may not be over.

With that in mind, until we see a break back through $1.2984, there is a chance that the strength we are starting to see come back into play could be short-lived. 

USD/JPY rallies into pivotal resistance area

USD/JPY has continued its ascent, with the price pushing into the key ¥114.37 resistance level. This is going to be absolutely crucial for determining the outlook for the coming weeks and months.

There is a good chance we could see a rejection and move lower from here. However, we need to see either an intraday rejection pattern or else a four-hour candle close above ¥114.37 to determine the directional here. 

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