Dollar declines continue to dominate for EUR/USD, GBP/USD and USD/JPY

EUR/USD, GBP/USD, and USD/JPY see further dollar declines, but will we see a fightback after such sharp losses?

EUR/USD continues its push higher after latest breakout

EUR/USD looks set to continue its bullish trend following the breakout through $1.1832 resistance. That seemingly paves the way for another period of upside, with a rise through $1.188 providing a fresh bullish signal.

As such, further gains look likely from here as we seek to build on the recent bullish break.

GBP/USD breaks higher after recent consolidation

GBP/USD has see a sharp move higher, with the recent rise through $1.3024 initially providing us with a good clue that such a bullish breakout could be on its way.

With Brexit talks back underway today, further volatility should be expected. While we have seen a minimal retracement overnight, watch for a fresh rise through $1.3177 for a new bullish signal.

USD/JPY head and shoulders likely to bring further downside

USD/JPY managed to break below the ¥104.94-¥105.03 support level yesterday, bringing about a fresh bearish signal by completing a head and shoulders formation. With a bearish trend throughout much of 2020, this breakdown does simply provide the latest move in a long-standing bearish primary trend.

As such, further downside looks likely before long. Whether we see a short-term rebound or not remains to be seen. As such, a break below ¥104.34 would signal a swift continuation of that bearish short-term trajectory. Ultimately, we would need to see ¥105.75 broken to negate this bearish outlook.

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