EUR/USD and GBP/USD hold their ground while USD/JPY under pressure

A weaker dollar has knocked USD/JPY, but given EUR/USD and GBP/USD some breathing space.

EUR/USD holds firm after losses

Having clocked up a lower low this week, the EUR/USD price rebounded somewhat yesterday. However, gains stalled at $1.094 and, as a result, a fresh downside move may develop, targeting $1.088 and lower.

The broader picture remains firmly bearish, with a rebound towards $1.100 likely to throw up another selling opportunity.

GBP/USD steadies above 50-day SMA

While the GBP/USD down move from last week is intact, it has lost momentum of late. The price dropped below the 50-day simple moving average (SMA) yesterday, but dollar weakness saw it rebound.

If the price can hold above $1.225 then a higher low may be in place following on from the September low below $1.200. A push higher targets $1.255, the peak from mid-September.

USD/JPY knocked back by US data

The rally in USD/JPY suffered a sharp reversal yesterday, with the price moving back below ¥108.00.

Further declines head towards ¥106.90 and last week’s lows, and below this the August lows at ¥105.00 come into play. A rebound above ¥108.20 is needed to revive the bullish impression.

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