Dollar weakness supports EUR/USD and GBP/USD but weighs down USD/JPY
The greenback has fallen in early trading, helping the euro and sterling to recover against the US currency, with the yen also in the ascendant.
EUR/USD oscillates around $1.10
A possible reversal could be in play here with EUR/USD, as the price struggles to hold above $1.10.
The daily moving average convergence/divergence (MACD) is losing steam and could be about to post a bearish crossover, potentially opening the way to the 50-day simple moving average (SMA). Below this lies the March lows just above $1.05.
A move back above $1.105 would point towards a resumption of bullish momentum, and target the March 2022 highs at $1.164.
GBP/USD slips below $1.25
Momentum has continued to stall here for GBP/USD, with no desire to push on above $1.25 yet evident.
However this has yet to develop into a more bearish move, with the price yet to move back below the April lows around $1.235. Given the range-bound nature of the pair since December, such a drop might suggest another push back towards $1.183, last seen in early-March.
The May high at $1.266 looms in the event of a move above $1.25.
USD/JPY drops below 50-day MA
The revival from the March low has stalled for USD/JPY, though with the daily MACD yet to roll over a more bearish view has yet to take shape.
However, if ¥135.00 is a lower high then we would look for a resumption of the downward move, targeting ¥130.00 initially. Beyond this the January low at ¥127.30 would come into play.
Bulls will need a close back above ¥135.00 to suggest another attempt to move towards the 200-day SMA.
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