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

In the wake of Janet Yellen’s speech the US dollar has moved rapidly lower, stymying the rally in USD/JPY and sending GBP/USD and EUR/USD flying higher. 

Euro
Source: Bloomberg

GBP/USD

Cable has moved by leaps and bounds of late, which has carried the pair back to the $1.4450 resistance level. Just above this is the high from mid-March, at $1.4516, and if the pair can break through here the next area to watch is the February high around $1.4670.

Given the quickness of the move, a dip is likely, and it may see the pair retrace towards $1.4320, or even in the direction of the rising daily trendline at $1.4280.

EURUSD

EUR/USD is now pushing back to the mid-month high just below $1.1350. Just above this is the February high at $1.1390.

The next areas to watch will be $1.1490, the high from last October, and then on to the August high at $1.1710. It would take a move below $1.12 to invalidate the current bullish outlook.

USD/JPY

Janet Yellen has certainly spoiled the party here, bringing the uptrend of the past two weeks to a sudden end.

A drop through the 200-hour simple moving average (¥112.50) now seems to suggest that the pair is heading towards possible support at ¥111.50 and then ¥111, with the next level to watch being ¥110, the peak from early October 2014. 

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