EUR/USD and GBP/USD in retreat as USD/JPY rises

The dollar weakened overnight, but downtrends in EUR/USD and GBP/USD are reviving as USD/JPY looks to move higher.

EUR/USD bounce runs out of room

EUR/USD has rebounded from the lows of yesterday, but the bounce may be about to run out of steam already, as the price hits the $1.08 level and encounters the 50-hour simple moving average (SMA) at $1.082.

Fresh declines target yesterday’s low at $1.065, while a continued push above $1.085 heads towards $1.095 and the Wednesday to Thursday overnight highs.

GBP/USD clears Thursday’s high for now

GBP/USD has also bounced from the lows and managed to push above Thursday’s peak of $1.179.

Further gains head towards $1.2314, while a resumption of the downward trend brings the week’s low at $1.143 into view.

USD/JPY drops back but further gains expected

The dollar bounce has eased off a touch, but USD/JPY remains firmly in its uptrend, having recovered almost all the losses of late February and early March.

The next big target is ¥112.00, resistance from February 2019 and 2020. Above this, is ¥113.64. A push below ¥109.00 suggests a drop towards ¥108.60, although even this may not spell the end of the bounce.

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