EUR/USD and GBP/USD go higher as USD/JPY still under pressure
Dollar weakness in the wake of the Federal Reserve meeting has proved to be a boon for the euro and sterling, but has put pressure on USD/JPY.
EUR/USD rallies off support
Early price action suggests a resumption of the upward move for EUR/USD, as the price bounces from $1.1325.
Further gains head towards $1.14, and above this a new higher high is created. This bullish view remains in place unless we see a reversal below $1.125, which may indicate a further decline and the creation of lower lows and lower highs.
GBP/USD edges higher in early trade
For GBP/USD too it looks like the overnight pullback has run its course – the $1.264 area has provided support over the past week, so a drop below this suggests some more near-term weakness.
Alternatively, a resumption of the upward move clears the path to $1.28 and higher.
USD/JPY remains under pressure
For USD/JPY, it is instructive that the brief bounce early this morning has already run out of momentum, having attempted and failed to break above ¥107.20, previously support at the end of May and now evidently resistance.
This would reinforce the bearish view as the current pullback continues. We need to see at least a move above ¥107.30 to suggest the bullish case has recovered some momentum.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Start trading forex today
Trade the largest and most volatile financial market in the world.
- Spreads start at just 0.6 points on EUR/USD
- Analyse market movements with our essential selection of charts
- Speculate from a range of platforms, including on mobile
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
