FX levels to watch – GPB/USD, EUR/USD, AUD/USD, USD/JPY

USD/JPY weakness is giving cause for concern, while the Aussie has continued the weak pattern from yesterday.

Pound sterling coins and dollar note
Source: Bloomberg

GBP/USD continues its retreat
The pair turned around fairly decisively from $1.44 last week, and has continued its retreat over the past two days. If the 200-hour simple moving average at $1.4227 is breached then we may see a move towards the $1.1450 support level, while below this the $1.41 lows come into view.

If this is just a pullback as part of the ongoing uptrend then the price needs to move back above $1.43 in short order, which will then clear the way to $1.44 and then on towards $1.4670.

EUR/USD looks to move back
So far the $1.2070 level is still holding as support for the pair, with a dip toward this level again this morning running into buyers. If this continues we look to a move back in the direction of $1.1180 and $1.12, while beyond this the $1.1350 area, the highs from mid-February, comes into view.

Overall it appears that dips continue to be bought, so unless the bears can get the price back below $1.1050 (around the highs of 4 and 8 March), the upside case appears to be strongest.

AUD/USD remains within its uptrend
While we have seen a swift move back from the highs of Monday’s session, the pair remains within its uptrend, and so far is holding above the lows seen on 10 March, in the area of $0.7425.

If the pair can recover the $0.7550 area then the uptrend is still secure, with the possibility of a move above $0.76 that would then target the June 2015 highs around $0.78.

USD/JPY moves down
Once again the pair has failed to break through ¥114. As a result, we may see a move back in the direction of ¥112.50, and then down towards the month lows at ¥122.20. Below this the February lows of ¥111 come into view. 

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