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

Dollar weakness is the main story for markets, but the theme has taken a breather for the day.

Pound coin and dollar note
Source: Bloomberg

GBP/USD dips slightly
Cable is slightly weaker this morning, but a shade of profit taking is hardly surprising after yesterday’s breakout that took the pair through the month high.

The next destination is the February high around $1.4670, while pullbacks may find support around $1.4290, and then on towards $1.4230 and $1.4150.

EUR/USD continues its uptrend
The pair has rapidly retraced most of yesterday’s post-CPI bounce, but the uptrend is still intact and should not be argued with. Dips should continue to be bought here, with possible support at $1.1250 and then $1.12. A breakout through yesterday’s high around $1.1350 takes us on to the February high near $1.14. 

USD/JPY holds the line
For a second day, USD/JPY has probed the area below vital support at ¥111, but the line still holds. If a base forms here once again then we look to ¥112 and ¥114 as targets in the short-term. Above this the 50-day simple moving average at ¥115.26 comes into play. 

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