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

The pound continues its retreat from last week’s highs, while USD/JPY’s refusal to go back above ¥117 indicates fresh yen strength.

Source: Bloomberg

GBP/USD eyes $1.47

The steady retreat from $1.46, plus an inability to get back above $1.4550 so far today inclines the view towards more losses for this pair, as the late January rally continues to be unwound.

A move below $1.4440 would then suggest a continuation down to $1.44 itself, and then below this the 2 February low of $1.4320 comes into play. 

Any move back above $1.46 cancels out the bearish scenario and brings $1.47 into focus. 

EUR/USD could target $1.14

The $1.1130 level continues to be the area to watch for support, and so long as it holds above here then a move back towards the highs of last week around $1.1250 becomes a possibility.

Above here the targets become $1.1316 and then $1.14 for EUR/USD.

A move back through $1.1130 targets $1.1030 and then $1.0950.

AUD/USD could see a 'sell the bounces' approach

Aussie resilience is so far a measure of how sharply it dropped last week.

If the price cannot get back above $0.7160 (the 50-hour simple moving average), then the approach should be more one of ‘sell the bounces’.

Downside targets for AUD/USD lie around $0.7010 and then $0.6955. 

USD/JPY could see more selling

Attempts to get back above ¥117 continue to fail, which reinforces the impression that more selling is on the way here.

Indeed, the pullback from ¥117.40 is the clear indication that a move down towards ¥116.30 is in the offing, with a move below ¥116 (the January lows), putting ¥115.72 and then ¥115 into sight. 

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