EUR/USD and GBP/USD move up while USD/JPY pauses after surge

Small bounces for EUR/USD and GBP/USD come after a string of losses, while USD/JPY’s ascent has halted for the moment.

EUR/USD tries to stabilise near 200-day SMA

A small bounce from near the 200-day simple moving average (SMA) at ($1.1819) comes after a string of losses for EUR/USD.

Still, the progression of lower daily highs over the past week and more is intact, and bulls would need to see a close back above $1.2 to be confident that the advantage has shifted back in their favour with the creation of a higher low and a recovery of recent losses. Sellers will want any rally to hold below $1.203 to indicate that previous short-term support has become resistance, opening the way to further downside.

GBP/USD edges up after losses

Some dollar weakness has provided respite for GBP/USD after a pullback from the late-February highs. The uptrend is still very much intact, with the wide gap between the price and the 50-day SMA ($1.3764) which prevailed two weeks ago now closed.

The uptrend seems set to resume, with a recovery of $1.39 providing evidence of this, while on the other hand sellers will want to drive the price below $1.37 to take out a previous key area of resistance (now support).

USD/JPY still climbing

USD/JPY has seen some of the most remarkable volatility, this time surging in a fashion not seen since the rebound of March 2020.

This bounce has left the moving averages far behind, but aside from some short-term weakness around ¥109 there seems no sign of any near-term weakness. The steepness of the ascent could prompt a dramatic pullback, but at present the surge shows no sign of reversing.

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