Dollar strength sees EUR/USD and GBP/USD decline as USD/JPY hits multi-year highs

EUR/USD, GBP/USD and USD/JPY dominated by dollar strength, with the greenback looking likely to continue its upward trajectory.

​EUR/USD selloff continues apace

EUR/USD has maintained its bearish trajectory, with the price grinding lower over the course of this week thus far.

Following on from a wider bearish trend, we expect to see further weakness until the price breaks through the prior swing high (currently $113.74). With that in mind, any near-term upside is viewed as a bearish retracement until the price breaks through resistance.

GBP/USD falls back into new 11-month low

GBP/USD has slumped into a new 11-month low this morning, with the pair continuing the bearish trajectory seen over recent months.

Exactly when we see another significant rebound remains to be seen, but any short-term upside should be seen through the prism of that wider bearish trend. Any intraday gains would need to break up through the recent swing-high of $1.3513 if we are to see a longer-lasting bullish move come into play.

USD/JPY manages to break into multi-year highs

USD/JPY managed to push up through the ¥114.98 resistance level yesterday, bringing about a fresh four-year high for the pair.

That push into multi-year highs brings expectations of further upside to come, with a decline through the likes of ¥114.49 and ¥113.58 required to negate that bullish view.

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