EUR/USD and GBP/USD fall as USD/JPY rally stalls

A turn to a more risk-averse atmosphere has hit EUR/USD and GBP/USD, while USD/JPY’s bounce has stalled for now.

EUR/USD in retreat again

The EUR/USD weakness over the past two days shows no sign of stopping yet, with the continuing losses wiping out the bounce from late last week.

Further declines target $1.118, the low from last Friday, and with a descending channel firmly in place more downside seems likely. Alternatively, if we can see a reversal back above $1.126 then we have a higher low and the makings of a potential move higher, targeting $1.135 and then on above $1.14.

GBP/USD fights to hold $1.24

A fresh lower high was seen over the past two days as GBP/USD failed to hold above $1.25.

The downward move appears to have stalled at $1.24 for the time being, but a bounce needs to clear $1.255 to provide a more bullish view. On the other hand, below $1.24 the price heads back to last Thursday’s low at $1.235 and then below this the bearish view is further reinforced.

USD/JPY rally hits the buffers

The USD/JPY’s dramatic decline of Tuesday was cancelled out by steady gains made over the past 36 hours.

While the price has returned to ¥107.00, given the market-wide turn in risk appetite it may be hard for the pair to sustain these levels. A drop below ¥106.50 would revive the bearish view, while continued gains target ¥107.50 and then on to ¥108.30.

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