EUR/USD and GBP/USD surge as USD/JPY wilts under pressure

Renewed strength in EUR/USD and GBP/USD has given new life to current rallies in these pairs, but USD/JPY continues to edge lower.

EUR/USD pushes on to $1.22

EUR/USD has continued to climb, rallying back to the zone around $1.22 that has held back progress throughout the year so far.

The recovery from below $1.21 bounced from trendline support and provided the fuel for the gains of the past two sessions, with a breakout above $1.22 opening the way to $1.234 and the January peak.

GBP/USD at three-month high

With GBP/USD, $1.4242 and the February high are now in sight again as the bounce finds new energy.

An elevated stochastic crossover points towards the strength of bullish momentum here, as the bounce from $1.40 last week remains in place. The steady recovery from $1.36 since March looks set to continue, with a bearish view requiring a reversal below $1.40 at the least.

USD/JPY heads back to trendline support

Since USD/JPY punching higher almost a week ago, the pair has seen bullish momentum fade away, with a drift back down over the previous three sessions and in early trading today.

A reversal higher above ¥109.50 is needed to revive the bullish view, although trendline support from late April has yet to be tested and could provide the fuel for a bounce.

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