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

A quiet week has started with the trends from last week broadly intact. Low volumes could boost volatility, although macro drivers are few and far between.

Pound sterling coin and dollar note
Source: Bloomberg

GBP/USD driven by US data

After quiet trading last week, the shortened final week has seen sterling push lower versus the US dollar. A rally back to $1.23 brought out the sellers, and it looks like a test of the key $1.2220 area may be in store.

A lack of UK data this week will mean that it is the limited flow of US news that will drive the pair. A move through $1.23 would target $1.2314 and then $1.2394. 

EUR/USD undone by dollar strength

The pair clambered off multi-year lows last week, but early trading today has seen a resurgent US dollar unwind some of the ground gained. It looks like the area between $1.0470 and $1.05 will provide significant resistance. Downside targets lie around $.10420 and then $1.0360.

USD/JPY weakness appears to have given way

The weakness at the end of last week seems to be giving way to some USD strength here. The next areas to watch for potential resistance are ¥118.10 and then ¥118.60, while the ¥116.80/¥117 area is the first area of possible support, followed by ¥116.21. 

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