EUR/USD, GBP/USD and USD/JPY all off recent highs

The recent rampant risk appetite has been knocked back over the past 24 hours, although this may only be a temporary development.

EUR/USD still dropping from Friday’s high

The huge appreciation in EUR/USD continues, although we have seen an ongoing pullback from last Friday’s highs.

The uptrend remains firmly intact, and indeed we may see a test of trendline support from the late May lows today. Further losses head towards $1.12, while a breakout above $1.13 breaks downtrend resistance from Friday’s high and reasserts the upward move.

GBP/USD heads towards support

Here too for GBP/USD we are watching trendline support from late May. The price has struggled to maintain forward momentum, with yesterday’s high only just above Friday’s peak.

Horizontal support around $1.2635 would be followed up by $1.259 and then $1.25 in the event of a deeper retracement. Alternatively, a renewed push higher targets $1.275.

USD/JPY looks to find support

The USD/JPY pair has undergone a sharp reversal that mirrors the impressive bounce seen last week.

If the price can hold above ¥107.80, previous key resistance then another push higher may develop, potentially heading towards ¥108.60, and then on to ¥109.60. In the event of further declines, trendline support from the early May lows would come into play around ¥107.60.

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