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

It looks like USD/JPY is finally seeing some downward movement, after a sharp drop in yesterday’s session.

Euro and dollar notes
Source: Bloomberg

GBP/USD downtrend continues

Weakness yesterday continued the downtrend, creating a new lower low at $1.22. A small rally has pushed the pair back to $1.2277, but the price will need a firm move above $1.2335 to indicate the retreat of the past ten weeks has run its course. Support is possible around $1.22, with a move below here taking the price on to $1.2085. 

EUR/USD confirms key support at $1.0365

Euro bulls defended the area around $1.0365 yesterday, confirming this level as key support from earlier in the month. A push through $1.0480 is needed to confirm further gains, with upside targets lying around $1.0520 and then $1.0580. Support is possible around $1.0288 and then $1.0225. 

USD/JPY may have topped

The drift here gave way yesterday to a sudden push below Y117, wiping out gains made since 14 December. A close below Y116.21 would suggest more weakness to come, targeting Y114.80 and then Y113. For the time being, it seems as if this pair has topped out. 

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