EUR/USD and GBP/USD move up as USD/JPY declines

Dollar weakness has allowed the euro and sterling to recover after losses yesterday, but has pushed USD/JPY back down.

EUR/USD bounces back for now

EUR/USD has rallied off the overnight lows, leaving the price very much stuck within the battleground of the past two weeks; unable to break $1.20 to the upside, but without a conclusive break below $1.185 to open the way to more losses.

Arguably with the US dollar still strengthening a more bearish view prevails, but for now the buyers are not giving up without a fight.

GBP/USD recovers after mixed Thursday

GBP/USD was relatively unaffected by the market gyrations seen yesterday, although a break above $1.40 continues to elude it. However, the pair is yet to test the zone of support of the past few sessions around $1.385.

For the time being, it looks like the buyers still hold sway, even if they are still struggling to find the strength to drive the price higher. Sellers will have to wait for a move below $1.385 to provide an indication that a deeper drawdown is at hand.

USD/JPY heads down after hard-fought week

USD/JPY is slipping lower after several sessions of indecisive price action.

If the sellers can hold the price near to the lows of the day then a more bearish view begins to emerge, potentially prompting the first major pullback here in weeks. Lower daily highs point the way to this scenario, while buyers will want to get the price back above ¥109 to suggest a new move higher is developing.

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