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

The dollar has edged back down in the wake of Powell’s testimony bolstering EUR/USD and GBP/USD but pushing down USD/JPY.

EUR/USD recovers as dollar weakens

EUR/USD rebounded sharply yesterday from its lows as Jerome Powell’s testimony weakened the dollar. For now the buyers might have a chance to push the price back towards $1.188, and above this a more bullish view may prevail.

A failure to hold yesterday’s gains hands the initiative back to the sellers and brings $1.177 into view.

GBP/USD on the up

A more bullish view continues to prevail here, as GBP/USD moves up from the losses earlier in the week.

Renewed gains target $1.39, and then on to $1.40, with buyers likely to add on weakness on the way up to this latter target. For now the bearish view is in abeyance, but would be revived with a move back below $1.374.

USD/JPY under pressure after Powell testimony

The rally of USD/JPY has stalled as Powell reins in tapering expectations and hits the dollar.

The bounce from the 50-day simple moving average (SMA) last week looks to have been a false dawn, and now we wait to see if the price can hold the 50-day MA (¥109.89) once again. The uptrend from late April is under threat, and a drop below ¥109.60 would be a negative development, although it might not bring it to an end entirely.

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