EUR/USD, GBP/USD rise as USD/JPY edges lower

US dollar weakness has continued, allowing EUR/USD and GBP/USD to rally as USD/JPY weakens from its recent high.

Transcript

EUR/USD recovery continues

EUR/USD's small bounce from the 200-day SMA ($1.1827) goes on, although it has only recovered a small part of the losses suffered recently.

Further gains target $1.20, once $1.1940 has been cleared, and from there the price heads on towards $1.22. The breakout from trend line resistance is now complete, suggesting a revival of the longer-term trend up, so a reversal below $1.182 would negate the bullish view.

GBP/USD pushes to one-week high

GBP/USD's rebound is in place, with the pullback having not even reached the 50-day SMA ($1.3780). Some resistance may lie around $1.40, but above this $1.42 comes into view.

Having reversed the string of losses from late February (although still to recover all the lost ground) the pair seems to be back on an upward course, with no sign of any bearish reversal as yet.

USD/JPY continues to retreat

The highs continue to be the target for selling here, as the USD/JPY price heads back to possible trendline support from the late February low around ¥105.

A drop below ¥108 would further confirm the short-term bearish view of a pullback, although the longer-term rally from the January low is firmly intact. Buyers need to reverse the move and recover ¥109, but after such a big rally a period of digestion seems likely.

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.