EUR/USD, GBP/USD, and USD/JPY at risk despite current rise

EUR/USD, GBP/USD, and USD/JPY on the rise, yet questions remain over the potential for a subsequent pullback.

EUR/USD starts to stabilise after latest decline

EUR/USD fell back into a fresh a three-month low yesterday, but has been stabilising in the hours since.

With a clear downtrend in play from an intraday perspective, we are expecting further weakness, if we do not break through the $1.1881 swing high. Despite that, we could see a short-term rebound to provide another retracement phase.

GBP/USD finding support on Fibonacci support

GBP/USD has started to take a more bullish shape after a period of declines yesterday, with the pair gaining traction at the 61.8% Fibonacci support level.

The rise through $1.3898 highlights the potential for a more bullish phase coming into play here. With that in mind, a positive outlook is in play here, where a break below $1.3742 would be required to bring a bearish continuation pattern.

USD/JPY rises back into trend line resistance

USD/JPY has been on the rise since Thursday’s low, with the pair rising back towards trend line resistance. That trend line breakdown highlights the potential for this latest rise to be a short-term retracement before we head lower once again.

With that in mind, there is a good chance we could see the bears come back into play around these levels. A breakup through the ¥111.65 level would be required to negate that bearish potential.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Start trading forex today

Trade the largest and most volatile financial market in the world.

  • Spreads start at just 0.6 points on EUR/USD
  • Analyse market movements with our essential selection of charts
  • Speculate from a range of platforms, including on mobile

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.