EUR/USD, GBP/USD and USD/JPY all in retreat

Risk aversion has hit FX markets, with USD/JPY in particular coming under heavy pressure.

EUR/USD rolling over

The EUR/USD pair has come under pressure in early trading, shedding ground as it retreats from $1.185.

Having struggled to make much headway since early August the pair now looks set to test support at $1.175, and then on down towards $1.165. A recovery above $1.19 is needed to provide a more bullish view in the short term.

GBP/USD resumes its decline

The failure to break back above the 50-day simple moving average (SMA) last week will come as a negative development for many, and with a second day of losses in store the question will be how far the GBP/USD pair will decline.

The next area of support could be $1.277, while below this the 200-day SMA at $1.273 comes into view.

USD/JPY hits six-week low

The yen continues to strengthen, and the USD/JPY pair has now returned to the ¥104.00 area that marked support at the end of July.

Bulls will be uncomfortably aware that the next level to the downside is ¥103.00, and from there down to ¥101.20. A rebound above ¥105.00 is needed to provide a foundation for some near-term gains.

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