EUR/USD, GBP/USD and USD/JPY continue to move higher

Risk appetite continues to lift key forex pairs, with the countertrend rally in USD/JPY showing no sign of slowing down.

EUR/USD edges back towards recent high

The recovery for EUR/USD goes on, lifting the price back towards the peak seen earlier in the week.

The price has yet to clear the 50-day SMA (simple moving average) at $1.1802, but intraday dips have been taken as buying opportunities, and with stochastics still rising it looks like the path of least resistance is higher. A reversal below $1.17 would be needed to signal that a broader downturn is at play, while additional gains from current levels targets $1.19.

GBP/USD continues to rise despite Brexit fears

GBP/USD has found the strength to rally despite signs of a hardening UK stance in Brexit negotiations.

The price is pushing back towards the top end of recent gains, with the price repeatedly falling back from $1.30 since mid-September. However, with signs of strong buying in recent sessions and still-rising stochastics the momentum remains with the buyers, bolstering the chances of a move back above the 50-day SMA ($1.3032).

USD/JPY breaches 50-day SMA

The USD/JPY pair finds itself in an interesting place, having continued to rally from the September lows.

Previous bounces that have reached the 50-day SMA (¥105.80) or exceeded it, have not lasted long. However for now the buyers remain in control, as rising momentum indicators and a new three-week high for the price shows. A reversal has yet to be seen, but with the downtrend still firmly in place there is still much to be done to avoid this bounce creating yet another lower high.

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.