Dollar weakness lifts EUR/USD and GBP/USD, while stifling USD/JPY rally

US CPI figures yesterday hit the dollar, with the euro and sterling both making some gains against the greenback. Inevitably, this has led to some weakness for USD/JPY.

EUR/USD rallies from March support

Euro bulls will be hoping that EUR/USD can repeat its March feat and bounce from $1.17 in a substantial fashion.

The price is holding that support level for now, although gains are limited. Nonetheless, it gives longs something to trade against, while shorts will wait to see if a reversal develops that takes the price back below $1.17. Further, gains target $1.88 and then $1.194.

GBP/USD bounces from $1.38

Dollar weakness in the wake of US consumer price index (CPI) figures yesterday has allowed GBP/USD to bounce from $1.38, providing hope that the downward move of August has run its course. $1.40 could now be in the sights of longs, which would help to restore a more bullish view.

Sellers will have to wait and see if the price reverses below $1.38, a development that might put $1.36 back into the frame as a downside target.

USD/JPY falters at July highs

Unsurprisingly, USD/JPY has weakened following inflation data yesterday, leaving the ¥110.60 area intact as resistance, as was the case in July.

Bulls will want to see a revival that clears this zone, in order to open the way to more upside, while sellers will be hoping for a reversal below ¥110.00, that confirms a more negative short-term view and targets ¥109.00.

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