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

USD/JPY is rapidly approaching key resistance, while the pullbacks in cable and Eurodollar appear to be coming to an end. 

Euro
Source: Bloomberg

GBP/USD

The recovery back above the rising March trendline might mark the end of the pullback from $1.45. We have certainly seen a steady march higher, with $1.41 providing support for the pair.

Today’s dip below the trendline may mark another possible buying opportunity, and a breakout above $1.4270 should see gains towards $1.4330 and then $1.4450. 

EUR/USD

The drop back from the month’s highs above $1.13 appears to have run its course, and with support at $1.1150 stemming the pullback for EUR/USD.

Dips may now be bought, although it would be good to see yesterday’s high around $1.1220 taken out as a first step in a broader bull move.

Any move below last week’s low of $1.1150 would signal a more extended correction, down towards $1.1070, and then perhaps down towards $1.08.

USD/JPY

It is good to see the pair moving higher, as looked likely last week.

Now it needs to break ¥114 to confirm that more gains are on the way, with the 50-day simple moving average at ¥114.60 another area of possible resistance.

Above here the next destination is ¥116. 

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